L2Beat update, Decentralized twitter and much more - The Daily Gwei Refuel #167 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily way refuel where recap the latest news in ethereum ecosystem i'm your host anthony sosano and today's the 19th of july 2021 all right everyone hope you had a good weekend i know the markets have not been kind over the weekend and right now as i'm recording this the markets are definitely not kind but i hope you had a good weekend out there i know a lot of you listen in or watch from uh the us or europe and northern hemisphere so you're enjoying your summer hopefully i'm uh still stuck in inside uh due to the lock down in melbourne and it is cold anyway so i don't know what what i would be doing outside can't really go to a beach and enjoy that or anything like that but but still hope that you you know you're

enjoying the time i guess like in the sun and stuff like that i just the markets right now like i've had a few people kind of like talk to me and kind of ask me my opinion on the markets i'm not going to go like through through a long winded opinion here but essentially the way i kind of view it right now is that most people that were around in like may and june they're like gone right now like 95 plus of those people are not around so that's why people saying oh it's a crab season or it's like bearish because it's just like not much is happening in the markets but it's funny because i was putting together the ether newsletter earlier and i mean the project updates section in that newsletter there is so much in there for the last week like so much

happened and i mean obviously the refuel i've been doing every day and there's still like 30 minutes plus worth of content on that so it's really just the markets that are bearish i mean everything else is like still on but still very active i mean we have the hcc conference going on right now in paris which i'm incredibly uh uh jealous about and i really really wish i could go i'm having super fomo right now but i'm sure there's gonna be a lot of stuff happening there um but generally yeah the only slowdown i'm seeing is is on the market side of things and the markets will do their their own thing they don't really track fundamentals um over the short to medium term it's more over the long term so all the stuff that we have playing out now whether that be all the

developments happening on ethereum one five five nine all the apps all the app developments um even like them the merge and stuff like that i don't think if the market's just generally bearish i just don't think the market's gonna react to those sorts of things i think that over time over the long term they'll act as fuel when the market is ready to continue back up but you know i think just looking at project updates and thinking that there's so much bullish stuff happening the price has to react is not the right way to go about it and i learned that the hard way during 2018 and 2019 when i basically you know i kept seeing tons of different kind of like bullish things happening within the ethereum ecosystem and i was like surely ethereum can't stay below 200 for much longer and it did like the

market can remain irrational for a very very long time and then obviously once the market got got bullish again and started starting getting really hot again we went from what 100 in march of last year to like 4 400 essentially in in in may of this year so in just over a year we went 44 x from the bottom and whereas we spent like you know a good i guess year and a half below 200 so even probably longer than that which i always find kind of funny right so when you're looking at kind of things and looking at the boy stuff happening you're listening to me on the refuel be really bullish on developments that's not me saying that i'm expecting like eighth to react to that in in the short to medium term it won't like it simply put it won't because my the markets in crypto

especially are not very efficient um and they're very momentum driven and most people who trade these markets or who invest in these markets are low um i guess uh what is it low information investors that's the term i'm looking for where they come in they don't really have any idea about what this ecosystem is or how it works or what's valuable what's not they don't really have a way to kind of measure it you know some with stocks at least you have some kind of way to do that like if you're a new investor in stocks you say okay well i want to buy apple well you can kind of like do a really naive um or i guess like surface level thing where you're like okay well i know apple's popular you know i know the macbook's poppy i know the iphone's a popular product uh

so i'm just gonna buy apple because i know their products are popular whereas with ethereum it's it's it is and even i mean even everything in this ecosystem even bitcoin it's a lot harder to kind of do that fundamental analysis on it you have to dive deeper and for most people they're first foray into crypto they don't care about that they're here for the gains the bull markets the dog tokens they're here for all that sort of stuff so um that's why i think you know the long term is is very bullish of course but the short to medium term is dominated by these speculators and you know we have seen a bit more institutions and a bit more kind of like smarter investors coming to the space but they are still made up of people at the end of the day and they those people

are still um are still going to be affected by the same thing that that regular low information investors are going to be affected by and that's by the fact that this space is complicated um human emotions are still like everywhere in this space it's still based on a bull and bear cycle um just like every market but it's very much exaggerated within crypto because that's just the nature of it so those kind of things are going to play out but anyway i'm going to stop there on the market commentary uh but it just generally the overall point is that don't expect major improvements even things like 1559 to have a massive effect on the price in the short to medium term it's always long term if you're in it for the long term you'll be fine um it is scary to kind of like keep

stacking during these times where the price keeps going down and you're underwater believe me i know i did it during 2018 and 2019 i stacked at prices that were double what they went to like i mean i was stacking a lot at 200 and it went back to 100 frequently during uh uh 2018 and 2019 um and i was you know i was down 50 right like it may not seem like i seem like a large drop but that's 50 that's like eighth going from 4 000 to 2000 or from 2000 to 1 000. it's a pretty steep drop so when you're thinking percentage terms uh you know i i get that it can kind of be scary to buy now and i think that's generally why the market's the way it is like people are waiting for a signal they're like oh i don't want to buy now

because what if it drops further well you know that's how we get bear markets same with like bull markets and people like i don't want to wait to buy i want to buy a net because it's going to be higher by the time i buy and just works reflexively in both directions so hopefully that's just a bit of extra color for you i will move on to all the stuff that happened over the weekend now because there was a lot that happened now i mentioned this ethereum kind of documentary that was doing a crowdfund uh on the mirror platform and they was running it for about 48 hours and they ended up raising two million dollars which is really really cool to see so this raise was done on mira as i said which is a kind of like new new web3 native publishing platform

uh and if i can go to the link of um of what happened there uh i think it's here yeah yeah you can kind of like see everyone that participated i mean i participated of course and everything like that unfortunately i wasn't able to become one of the executive or co-executive producers because some whales came in and just like absolutely you know killed it like 148 from leo right here 111 eighth from this uh not no name address and then nanex cool of with 358 for third place that is mariana conti so for those who know him he's um long time maker not at maker anymore kind of going solo right now but was uh was it make uh the maker foundation for a while and then you got like a bunch of other backers here um you know i didn't even get in the top

10 or top 20 unfortunately i woke up and my my my contribution was actually much less than the rest of them i'm here number 28 six eighth um but i hope you kind of participated in it you got like uh some uh some infinite tokens you also got an nft if you contributed at least one eighth uh that nft is this one here which i think is really cool but i'm really looking forward to seeing this documentary get made uh you know as i said on i think was last week's refuel i hope to see this land on something like netflix it'd be really really cool to see ethereum get more mainstream exposure from uh you know i guess it being told from uh within the community rather than uh mainstream media covering ethereum and getting everything wrong because this documentary is being kind of like made by people who actually

understand this space and are actually going to interview people who who are the right people to interview such as vitalik and aya from the ethereum foundation see i see a walkie there from get coin um and there's a bunch of other people as well that basically all of the people that don't get much of a voice um in kind of like the mainstream they're getting a voice in this movie so i'm really really looking forward to seeing how this plays out and as i said i hope to see it on more of the mainstream platforms like netflix and other streaming services uh but yeah i'm glad that i got to participate in here i hope you did too and it's really cool to see that this is like i think this is the first crowdfunded uh movie um or at least ethereum movie um using kind of like ethereum as a

crowdfunding platform so that's really cool to see and much better than all the scammy icos that we saw right which went nowhere this is actually going to event shaped or something um that's real intangible but anyway i'll be keeping an eye on this and keeping you guys updated with it so we now have an ecosystem readiness checklist for eip1559 so on here you can see um that uh trent van epps is tracking essentially which kind of like ecosystem projects are ready for one five five nine there's different statuses one of them is active so active is basically that uh they're actively uh kind of i guess uh uh uh sorry actively um uh doing working on one five five nine not started

it's self-explanatory um in progress uh and and and complete here so you can see here a lot of them are basically active or or not started these are like developer tools here which aren't necessarily um uh critical or anything like that i would say that wallets are the most critical part of this or or kind of like development libraries are kind of the same as developer tools so if you scroll down to infrastructure which includes wallets and other infrastructure providers you can see here that infuria is is ready there's a bunch of them that are active uh not started is basically only three metamask trezor and wall eath i think metamask will have it done in time i think that is generally pretty easy for them to do and i showed last week that they've already got

test net transactions running through metamask mobile so i think that's going to be fine but essentially i expect all of these to to be done um before one five five nine goes live on uh august uh fourth of course so yeah if you want to keep up to date you can check out this this checklist it'll be linked in the youtube description for you to do so so speaking of one five five nine tim baico put out a tweet uh i think it was what july 16th on friday where he said at the current gas limit the proof of work chain would be the would be deflationary with a base fee of 150 grey 133 for block rewards and some buffer for uncle rewards on proof of stake with the current daily issuance eleven hundred eighth the chain would be deflationary at eleven gray now i have discussed this

before and i've kind of like covered that new tool you can kind of play with at ultrasound.money where it lets you kind of like set assumptions you can see it here in the image of like the staking amount which is being covered by my camera but it's on the left side there the base gas price and the merge date now i think people are really underestimating the effect this is going to have like this is a stark difference this is like essentially almost a 15x difference here where with people of work we would need 150 grey plus which is only really going to be tenable in i guess like the short to medium term during a bull market when like lots of money's flowing around people don't mind paying like ridiculous amounts for gas fees or whatever but this kind of stuff 11gway or even 20

grade that's kind of normal in these markets that we've been seeing even in the really quiet markets on ethereum and the really quiet kind of ecosystem we have right now gas prices have still been 10 plus and i think we got into the single digits rarely i mean in the quietest parts of the week we may get into the single digits but normally it's it's 10 to 20 grey probably a little bit more than that depending on on what time you're doing your transactions and we're still seeing over five million dollars of average transaction fees on ethereum so we would be burning like uh much more than we would be issuing a per day once the merge goes through so i think this is really cool because i actually think that if you kind of think about the markets and this is goes back to what i was saying before

and think that okay well we're in a short to medium term bear market what happens if we start kind of recovering towards the end of the year early next year well that'd be really cool because that would coincide with the merge so what ends up happening is that we might get the merge in kind of like early 2022 and the market's kind of heating up again which means the gas prices are going to spike again which means more eth is just going to keep getting burned so i think when when you kind of like look at look at things like that and look at the timing of these things it's really cool but again i've mentioned before how the ethereum development doesn't really time itself around the markets and this is exactly why it goes back to my point that i was making this is exactly why the fundamental

developments do not get kind of like priced in is because it's not like we waited until the bull market to deploy one five five nine um we're actually going to be deploying it in a bear market really or or at least like a downtrend um we didn't we didn't say okay well you know it's kind of skyrocketing right now you know when it first hit like it's old all-time high and we we didn't kind of think to ourselves well okay this is crazy like um we're gonna have to deploy 1.59 right now we just said well no it's not ready we have to because you're doing the research and development and then finally we kind of uh merged it in and now we're kind of like launching it when the market is is bearish when the the ecosystem has pretty much lost as i said 95 of its

participants but still this wouldn't matter in a post-merge world it would still be deflationary once we have just proof of stake which i think is really cool so yeah i guess this is just another way of saying that like long-term ethic is just so incredibly bullish and i think that there's not many people who actually understand the implications of this where not only is this eighth kind of like you know if you think of one five five nine as a person that buys eighth just as like a conceptual thing here not only is this person buying millions of dollars of each per day they're burning it they're deleting it uh so and and not only are they doing that kind of like starting august 4th but once the merge goes through they're going to be doing that and making it so east is deflationary so that essentially the block rewards

won't even have any impact uh which i think is really cool so and as i said it even like tengwei or living gui is the norm during a a quiet market and that's like during the quiet market of where a theme is today once we have more and more kind of like layer twos rolled out more and more kind of i guess some uh people coming into this ecosystem even during quiet markets the baseline of what the cheapest gas price just continues to trend up as well so it's really cool to see that play out i can't wait for the merger i really can't wait for it but still it's a while away so i'm not holding my breath right now so starkware announced today that starknet alpha 1 is now out so this supports l1 to l2 interaction on-chain data and the growing stark net

ecosystem so you can see here they've got kind of introducing it here and how this all works alpha one features as i said includes l1 to l2 interaction where uh basically what they've built is a messaging protocol between layer one and layer two which will allow developers to implement seamless transaction flows between uh the different layers um and i mean most of this stuff is for developers to kind of like build out what they're doing and and kind of um use it starqus zk rollups to do so uh and then on chain data availability as well so stark net state update is now also published as on-chain data on ethereum so they're not just using their off-chain data availability uh which was the valydium kind of roll up there but they're also kind of pushing stock net state updates to the

ethereum which makes it all the more secure of course uh stock net uh operating system code has also been released here and that's i think i've discussed this before on the refuel that's basically the start quest virtual machine along with their cairo programming language which is what dydx runs on um i i believe so if you want to use it you can go use dydx this is really cool uh i think stuck i can't remember if starkwear um teased that they'd have a fully evm compatible or at least virtual machine compatible uh zk roll up by august or september i'm pretty sure that was zk sync but starcraft's not very far behind and it's getting getting closer and closer i mean this is only the first alpha and obviously this is just for developers and users won't be able to kind of use this sort of stuff for a

little while but still this is the first phase of it and as i said before i think the next six months in the layer 2 ecosystem is going to be pretty wild with all these releases going live not just for users but for developers as well to keep building out this stuff so that's really cool to see speaking of layers there's a few updates to get through here actually darma has uh it has got a wait list now where you can sign up for their layer two wait list to get access to layer two on dharma in the coming weeks i'm assuming that they're gonna be supporting things like arbitrary and optimism zk sync and you know polygon our pos chain as well i mean i know it's not a layer 2 but still it's part of like the scalability landscape pr and i think that's going to be really

awesome because dahmer is one of those tools that people use as kind of like normally friendly onboarding vehicles for ethereum and 4d5 so if you want to go sign up for the l2 wait list you can this will be linked in the youtube description uh michael silberling has put together a dune analytics dashboard that compares side by side ethereum uh sorry unicorn v3 on ethereum's layer 1 and unisoft v3 on the optimistic roll-up uh sorry optimism's optimistic roll-up network here so you can see the total value lock to the users the um the volume the trading volumes and things like that it's actually been growing quite steadily given that there's only six tokens available for trading on optimism right now for uniswap uh though and those six include obviously like

eighth and about to bitcoin some stable coins and also the fact that there's a there's kind of like no easy onboarding just yet i mean the onboarding isn't too hard you can follow a guide about this as a guide for it but generally it's not like there's any centralized exchanges that have enabled kind of easy onboarding into this just yet um and also the markets are quiet so i'm actually pretty impressed with the growth i think tvl was at like six million dollars last time i checked um and volumes are averaging around 1.5 million dollars a day which is pretty good i think for something that's totally brand new later to ecosystem where uh i think the optimism team doesn't want people uh doing kind of like any sort of mass adoption on this just yet or or having like too fast adoption i think they

definitely want um to make sure that everything's stable and everything's working well and keeping it quiet for now and there's no liquidity mining either on this just yet but there will be i'm assuming there will be like very very soon but still uh really really cool to see this kind of um uh happening here and see this dashboard here so you can you can check this out it'll of course be linked in the youtube description um but speaking of tracking layer 2 activity l2 beat has gotten a huge update here as they say so l2beat.com they've got a new logo they've got a new website design i mean i've showed you guys this website before but essentially this is a huge refresher here they've got all the l2s listed here nicely for everyone showing the value locked the percentage change over seven days the market share

its purpose and the technology that it's using and you can click through let's click through to optimism here you can see the tvl um you can see the project overview i mean i've gone through this before but they've just basically cleaned it all up and made it look a lot better which i think is really really cool to cool to see so if you want to check out and keep an eye on all the l2s on ethereum you can do so from this uh website and you can even i mean it's really cool that you can even check things like uh the the hypothetical level of decentralization the current level of decentralization is it permissionless or not so you really will be able to know kind of like the security trade-offs and the decentralization trade-offs that you're taking for these layer twos because it's still

so early right because a lot of this stuff is you know i guess you consider them beta deployments at this point in time so really really cool site to to keep track of everything happening so scoopy triples is uh teasing a new alchemics kind of like user interface here user experience which i think looks really awesome i mean this reminded me of some of the i guess fintech designs out there now as much as i think fintech is like a stop gap for uh i guess fixing finance they have really beautiful interfaces a lot of the apps that we use um that you would have used yes they're kind of like centralized and and kind of like kind of like slow and still have to deal with i guess the um the traditional finance system but they look really nice

so uh whereas a lot of the um d5 apps still i mean there are a lot of default apps that look nice but i think many of them still look very uh daunting for people a lot of them have pretty uh i guess like uh basic uis where it doesn't have much information doesn't really show people everything um but this is what alchemix is doing here with this redesign you can see in the image here and sorry in there in the screenshot here that they've got like much more information being displayed to the user it's much easier to follow and they've got uh you know a bunch of different kind of like user experience enhancements like different colors and things like that to track what's going on so that's really really cool today to see this kind of i guess leaked by scooby triples here

so this is a photo that i came across in one of bankless newsletters i had seen it before but i kind of tweeted it out where this is a photo from 2014 with vitalik gave a presentation on ethereum uh now the photo is basically it's hard to tell because it's in very low quality and it kind of like looks like the photo was taken on an old nokia phone but essentially the slide says the lego of crypto finance and then underneath it i'm assuming there's a bunch of different kind of like um things describing what those legos look like but the point of me sharing this screenshot was to kind of show that defy and money legos aren't new concepts ethereums have been working on them for for many years at this point and i would even go a step further and say that pretty much all the things that we enjoy

today are not really new concepts at all you can look at things like tokens which were known as colored coins uh beforehand this was done um you know before ethereum was even a thing this was being talked about on the bitcoin talk forums uh smart contracts this was a the smart contract term was actually coined by nick sabo in 1996 like that that was a very long time ago now it's like 25 years ago um proof of stake was coin it was um created in 2011 there's a bitcoin talk forum post where someone kind of uh put forward this idea of using stake instead of um instead of like mining machines to kind of validate the network and then on top of that there was also layer 2 scaling which was discussed very early on as well in in on the bitcoin talk forums uh basically

i would say as early as like 2010 maybe or 2011 uh definitely somewhere around then so when you kind of look at this sort of stuff and look at kind of how forward thinking a lot of the og crypto people are uh were and still are it's just amazing the fact that it took so long to get here because think about it in 2014 ethereum's main net wasn't even live yet so no one could build this sort of stuff but ethereum went live mid-2015 we had smart contracts we had all this kind of stuff going but we didn't actually get proper money legos until 2018 at the earliest and then into 2019 is when they started really coming together and in 2020 obviously it exploded so we still waited four five six years after this presentation was given to get to a point where people started kind of

like embracing money legos and kind of talking about it more and seeing the the modularity of finance seeing how revolutionary it could be so it's just really amazing that that it took that long but what's even more amazing is that it took what how many years for smart contracts to come to to blockchains from when nick sabo proposed it uh like almost 20 years at talk from there so and you know there's countless examples of this um not just in crypto but just in general when you look at kind of people who are very forward thinking and have the foresight you're potentially decades into the future it's just amazing that these people exist so i mean i wrote a bit more about this in today's delegate newsletter but essentially i just kind of wanted to kind of highlight the fact that really when you think about innovators

in inside and outside of crypto they are thinking decades in in the future they they are not like us they they are they are pretty much thinking what the world's going to look like 20 20 sorry 10 20 30 years whereas you know a lot of us tend to kind of like have um a short-term mind where we kind of look at the short to medium term especially when it comes to crypto prices whereas a lot of these other people will um will definitely look into the future especially if they're they're kind of like um you know building the future themselves i mean vitalik has obviously been building the future for quite a while now but not just him but like all of the the um people working on the defy apps and even things like nfts and stuff like that they're they're all kind of looking

very far into the future and i like to think that through the refuel i can kind of like bestow some of my long-term mindset onto onto all of you guys and to make sure that you're thinking long term because if you look back and and to 2014 if you had invested in the ethereum ico in 2014 i mean you would be absolutely laughing right now if you had held your eighth from then so even just like from a market perspective it wasn't that long ago so taking the longer term view is just always the better option in in my mind unless you don't have the long term view to take obviously but you know if you do uh it's it's always the better option and if you're in this to kind of like build wealth over time then you shouldn't really concern yourself with the day-to-day

kind of action of the other crypto markets you should definitely i know it's really hard to to do i know i'm kind of like a hypocrite here because i definitely do look at the price every day but generally you know when i'm looking at the price i'm just like okay whatever it's just eve being eighth um and then i kind of think to myself okay well what's gonna happen in a year from now or two years from now or three years from now whatever like what are we gonna have and i mean in 12 to 18 months from now ethereum is gonna look very different to what it looks like today we're gonna be post merge we're gonna have one five five nine we're gonna have d5 um you know continuing to grow at a rapid pace we're gonna have the layer two rollout basically done

and if t's are gonna keep gaining ground i mean you look at the price you might feel bearish then you just look 12 to 18 months out on the ethereum fundamental side and you can't help be extremely bullish but don't let that blind you don't let that that make you think that the short-term market action is going to reflect the long-term bullishness that does rarely happens you need to kind of look at the long term and kind of like realize that the the kind of markets are even kind of like more longer-term looking and will take a while to kind of catch up to those fundamentals so chandling god put out a tweet where he said uh the other day where he said unpopular opinion defy will not outright replace banks or traditional financial institutions what we'll likely see is first fintechs and then banks adopt d fire into their

back-end systems to provide their clients higher yield more transparency and superior financial products i mean i've spoken about this countless times on the refuel i totally agree with chain link guide and i don't think this should be an unpopular opinion because the fact is we're already seeing this play out look at compound treasury look at arves um avec pro the institutional kind of pool that they're doing look at um i guess like all of the the kind of bank on the banks but like all of these financial institutions getting interested in d5 now they're not just going to seed their power and go and say to their customers hey customers you know you know we know you've been with us for a while but this really cool defy thing now we think you should install metamask and go interact with defy uh and you know

we'll just we're just gonna close down no it's not that's not gonna happen at all and i don't think that that should happen in any in any way i actually replied to chain link guard and i said here as much as we all love being our own bank most people don't want to nor do they care to what matters is that the choice exists you can either choose to go completely bankless or use a trusted third party such as a bank or financial institution with d fire to choose your own style adventure because at the end of the day it really is i can choose to do my own kind of a banking through metamask on default apps or i can go through a third party and say hey you know here you go take custody of my assets do it for me i don't care out of sight

out of mind i just want to earn a yield that's exactly what happens today in the traditional finance system and that's exactly what a lot of people are very comfortable with especially from a custody perspective a lot of people don't want to custidy their own funds and that's fine but the fact that the choice exists for these people is is already like a million times better than what we currently have but on top of that and as as chandling god also notes um i think somewhere else in this thread where he essentially says like not only does defy improve and offer better products to these institutions it also improves transparency overall so generally regulators are going to be even happier with this because they're going to have better transparency they're going to be able to monitor this system more closely and not just them but like anyone is

able to monitor this system more closely we're going to be able to tell if something is insolvent we won't have to wait years to find this out we're going to be able to tell if any funny business is going on we're going to be able to see which projects are actually growing versus which ones are actually lying i mean the transparency is actually a blessing i know it's a curse because of privacy concerns of users but it's a blessing because we get to see all this other stuff that's going on so yeah i mean i've mentioned this plenty of times on the refill generally i believe that d5 is going to be a mix match or a misma sorry a mix of basically end users like myself and probably a lot of you who prefer to do it on our own and a lot of other people who prefer to

don't to do it through a defy institution or sorry a financial institution or a bank or anything like that and that is totally fine because they'll even be able to monitor what's happening they'll be able to see where their funds are going within this institution i mean the institutions can offer them a full like offer their customers a full transparent dashboard to monitor what they're doing with their customers funds and i believe that the ones who don't do this it will actually lose out to the ones that do and it'll be demanded by customers so already we have like something that's much better than the existing system now some some people might might hit back and say well that's just admitting defeat that's just letting um letting centralization into our lives that is not respecting decentralization it's like well this is just inevitable because d5 is open permissionless anyone can

build on it just because it's a centralized entity building on it i can't do anything about it i can't stop them none of us can stop them dfi is for everyone ethereum is for everyone whether that be individuals corporations institutions and it's up to us to make sure that the core protocols stay decentralized so that the users have a choice so that we all have a choice so we don't have to basically go through these centralized intermediaries if we don't want to that to me is the key innovation of d5 or at least one of the key innovations of d5 so hopefully you agree with me if you don't you can comment in the youtube description or come on to the discord and tell me i'm wrong i'm happy to to debate you i'm happy to debate anyone on this sort of stuff but i just truly

think that this shouldn't be an unpopular opinion it should be accepted as a matter of fact and that's what's going to happen and regardless if you think it's it's right or wrong it's just what's going to happen i think so i live in lambo put out an interesting tweet where he said he says why the flipping is inevitable inevitable because money is all about network effects and a network of networks is bigger than a network now he said he shows in this image here basically bitcoin and ethereum now you got bitcoin up into the left which is just a circle with the name bitcoin sorry with the word bitcoin in there and nothing connecting to it then on the right you have ethereum uh the circle with the the word ethereum in it and then you have all these other circles branching off of ethereum

and and in different categories such as the d5 category the metaverse category dows and nfts and from those um uh categories you have branched off into different projects so i guess you have ethereum at the center you have nfts or d files as one as two of the major use cases and then branching off of those you have even more things like make a dial obviously is branched off of d5 and you need swap rv and then nfts you have crypto punks and hashmask and everything else and this is what he means by a network of networks and this is exactly what i talk about when i talk about the value that's being driven to the ethereum network not only by the speculative stuff that's happening on the 8th side and within the crypto markets but also on um within dows within metaverse and define nfts

every transaction that hits mainnet is contributing to the value of ethereum and post 1559 is going to be directly contributing to the value of ethereum because you're going to be having eighth being burned due to transaction fees and that has been my long-term bull thesis for quite a while now is the fact that i believe utility trumps uh just simply holding an asset i believe utility value is much more uh is worth much more than just something like digital gold and i believe that bitcoin is something that can actually even be branched off of ethereum because you can just draw a line from ethereum to bitcoin and then that will represent all the tokenized versions of btc on ethereum and you know you just see how ethereum is a superset of bitcoin in that respect so i mean i i really like the way of

visualizing this i think it makes a lot of sense and of course i believe in the flippening and i believe that it's healthy for the ecosystem when it happens i don't know when it's going to happen i think it's going to be violent to get there for sure because the markets do their own thing but to me it's inevitable so stani uh put out an interesting tweet the other day where he says since jack is going to build arveir on bitcoin which is referencing jack's kind of plan to build defy on bitcoin ivers should build twitter on ethereum now he's actually not joking about this there's another report came out from decrypt which went into a bit more detail about this um but as cool as i think this is i'm kind of bearish on decentralized social media in general and i have been for quite a while for a

number of reasons we actually had this debate in the delegate discord channel the other day but the number one reason is that i think that moderating a decentralized platform uh like sorry decentralized social media platform is pretty much impossible i believe i think that if you look at all the ones that have kind of popped up over the years like steam it and there's a bunch of others out there they either turned into places of like a real big toxic crappy culture where really the fringes of society come in to basically spread whatever they want to spread on there and a lot of illegal content gets posted and i'm not talking about illegal content like um political descent or stuff like that i'm talking about actual legal content i'm not going to mention

what it is i'm sure you can imagine what it is but sort of that stuff that gets posted on there that um you know just stays on there because it's decentralized and people just don't want to use a network that or a social network that has that rubbish on it they want to use something that's you know as much as we all hate like censorship and things like that we want something that's curated for us because that is an enjoyable experience so that's that's one major issue is that moderating a a you know decentralized social media network would be pretty much impossible to do secondly scaling this would be very hard to do in a decentralized way the technology is not just yet there yet but i think that's obviously much easier than uh than kind of moderating there and i think thirdly this undertaking

depending on how you do it can can go pair shows pretty quickly because of monetary incentives now i mentioned steemit i think steemer or steam i shouldn't say steven maybe maybe steam is a better reference there i think steam failed for i mean you some of you may have seen what happened where justin sun actually took over the steam network by because it was a depos system and he basically was able to gain control the majority of the network but i think the reason why steam failed to gain kind of like any sort of mass adoption and why i stopped using it i was actually using it in 2017 for a little bit was because there was a lot of uh gaming going on there's a lot of bots going on where where basically every time you uploaded a post it kind of paid that that kind of creator of that post

out of the inflation of the network so steam tokens essentially um so what ended up happening was that people were buying and selling you know upvotes of course they were using whales to manipulate things there was some very sophisticated whale bot farms going on that would basically um direct all the the volume or sorry all the kind of rewards to themselves so that kind of like broke and how do you moderate that how do you fix that like you can try and do it through crypto economic design but it's not easy it's definitely a hard problem so i mean kudos to ave for trying this i mean it's a little bit out of their wheelhouse but still it'd be cool to see them try this but at the same time there's a lot of fundamental issues that still need to be ironed out and i think that some of them are pretty

much impossible like the moderating at scale thing but we'll see i hope i'm wrong i don't know if i am i i don't know i probably don't know enough about it but from what i've seen all the platforms that have spun up at this point have kind of like failed to achieve any kind of like mass market fit even within the crypto ecosystem if you just count the people in crypto most of them don't want to use platforms like that they're happy using twitter because twitter gives them what they want um and you know as much as like censorship sucks and you know we want to decentralize everything it's kind of hard to decentralize social media for the reasons i outlined so philip diane from flashbots put out a response to that those kind of like real stuff that was being discussed i think over the past couple weeks and

the trdr is that um flashbots believes incentivized real clients are a negative some unstable game for everyone flashbots commits to protecting ecosystem stability and long-term incentive alignment for all and to building sustainable mev infrastructure now a side note here the uh person that was building the this kind of software all these clients edgar said that he has decided to not release it because he was getting bullied or getting death threats or whatever or toxic kind of like people coming at him and okay that that's fine and everything but it always gets me when people say that because one you can't verify that that actually happened and two i mean he was saying stuff like i'm gonna kill ethereum or you know i'm gonna take down ethereum or i'm gonna do this i'm gonna do that what did he expect was gonna happen i mean you poke the ball you get the horns

like i don't know i just kind of like don't have much sympathy i don't condone people sending him death threats or kind of like being super toxic to him or anything like that but i mean at one i can't prove that that actually happened i'd have to take his word for it and two generally when you as i said when you kind of like poke the hornet's nest or or kind of like mess with the ball you're gonna get pushback on it you can't just kind of go up to someone and yell at them or go up to a group of people and yell at them and tell them you're gonna like destroy ethereum or destroy kind of like especially their investment or something or whatever um and confuse everyone and make all this drama and not expect some blowback but anyway done with that side note i i think phil

in his blog in this blog post um it describes what basically i said about this kind of stuff and these real stuff on the refill when i covered it kind of i think last week or the week before that basically as he says it's a negative sum game where it doesn't really make sense for miners to do this or for people to do this because it makes the chain unstable for everyone it makes it so that essentially you can extract a lot of value in in short in the short term but the medium to long term implications are really bad it essentially makes it so that no one wants to transact on the network anymore and the price of eighth logically would fall because of this as well so i recommend going and reading this whole post it's a really great overview phil has been thinking about mev um

longer than most people have so he he's definitely someone to listen to and he's definitely a great follow but i'll link this in the youtube description and you can go check this out for yourself to read all about it it's a pretty good breakdown of what's happening so finally here the squanto i mentioned on last week's refuel who kind of created a github repository of different staking provider mishaps has created another list uh in this put together of rugs hacks and exploits that have happened on various ethereum uh uh virtual machine compatible networks such as ethereum bsc and polygons you can see the whole list here the apps that were affected or the service that was affected uh and yeah i mean there's there's kind of like more than this obviously and he's gonna keep populating it you can submit a pull request and

populate it with the ones that you want to as well but i'm glad this exists i actually wrote in the delegate newsletter last week that i wish that something like this existed so obviously uh the squanch here is a is a regular reader of of the delegate newsletter so i mean shout out to him for that but shout out to him as well for just creating this i think this is going to go a long way to um you know providing users with i guess much more information about which products they should and shouldn't use which ones have been hacked in the past and how they responded to it and everything like that it's funny because a lot of these products here are actually not um you know very well known we're actually like pure like scams and and kind of like rugballs like polywhale

here hosted on deleted telegram um it was a it was a rug pull whatever a bunch of other ones like um poly butterfly 600 was stolen but there's legit ones like alchemics right i mean alchemics had a legit bug um or exploit that they responded to very well and they got it all fixed and done and they were able to relaunch the al leaf product last week so yeah this this kind of like doesn't cover it doesn't split them up into kind of i guess what they were and what they aren't it does have a little bit of a description here but you can kind of dig through yourself and see what's happened here and see if it was an actual kind of rug pool if it was an exploit how the team responded to it and all that good stuff there but on that note wow this is a 39 minute

reach this is the longest one i've ever done i didn't even realize but anyway thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone