Mev-boost updates, NFT Loss Harvestooor and more - The Daily Gwei Refuel #501 - Ethereum Updates

Transcript

hello everyone welcome to another episode of The Daily Review where you capped latest news in ethereum ecosystem I'm your host and it's designer and since the 6th of December 2022. all right everyone let's get into it so another update on the Mev boost ecosystem today this time a new chart from Tony here who's an ethereum researcher uh and PhD student he's got a nice little chart here showing Mev boosted slot share uh cumulative now slot share being block obviously in Hoover stick ethereum we refer to blocks as slots here and as you can see it's showing the same Trend I guess that I've been highlighting lately about uh flashbot's dominance coming down now this data is from the 15th of September to the 1st of December and you can see

here that uh the I guess market share for other relayers uh is growing especially blocks route Max profit which is number two currently but you can see flashbots's dominance is coming down quite clearly in this chart and obviously we have a bunch of other relays that are just coming online now I'm gonna have to wait probably you know six months or so to see what uh what the um the market share looks like uh and then uh Bert from flashbots points out here that uh if he thinks this is due to some external builders on blockshare getting better you should be able to confirm with data and then Tony says your intuition may be right especially Beaver build landed many payloads on the Block chart relay recently much more than on the flashbots relay I derived that info looking at the Sankey diagram on Mev boost.pics knowing that Beaver

build isn't in the business uh that long yet uh and I actually came across this website today Mev boo stop picks that I hadn't seen before that basically shows in I guess real time uh or I guess like more updated than a than every few weeks uh uh the market share on of Mev boost relays I should say here so you can see you know total block Market Mev boosted block Market it's I mean it's a similar site to mov watch.info but just another one for you guys to to go and look at and it's got a bit more uh the charts yarn and a bit more data on on everything that's happening here but but the reason why I like highlighting this is because the relay I mean relayer diversity is just sec I mean it's just one part of the diversity that we want

to be seeing as part of the Mev boost ecosystem we also want to be seeing build our diversity and seeing where these Builders send their um send their blocks to like do they send it to you know just flashbots or do they send it to flashbots and other relays uh and you know do they send it to only non-censoring relays so all of that obviously is very important because we want to see nonsense ring relays again market share here but just generally I I mean I'm not to pick on flashbots but it's just great generally to see any one relayer have their dominance kind of diminished because we don't want centralization around any one relayer and that's why I like highlighting these things here so you can go check out Mev boost.pics website I don't think I have highlighted it on the refill before uh

but I'll link it in the YouTube description for you to check out uh and this is something you can bookmark and keep referring back to obviously I'll I'll definitely be referring back to where as time goes on but I think it's something that uh that is very useful for everyone now speaking of Mev boost there's two other things I wanted to get through as well which is which is we have another relayer that has been launched from the eth finance and eth Staker folks so this relayer is called I believe how you pronounce it is ayustis or something like that I think it's I think it's Greek maybe um but yeah that's what it's called and there's information here in this Reddit post about this which of course I'll link in the YouTube description below uh but it was in the early testing phase uh

a little while ago I think they posted about it on what date was it about a month ago now I think or just over a month ago oh no more over a month ago Friday October 28th yeah uh and now I had their mainnet relay has been running for over a week I think this was supposed to three days ago so almost two weeks now and it should be just as solid as the test net relay so their home page is up here at relay.iustus.live uh and I used to start live uh which is currently uh blocked by a metamask uh this was as of three days ago so maybe it's not not blocked now but it shouldn't it shouldn't be uh but yeah you can go check out all the information here obviously it's an uncensoring relayer I don't think spinning up a censoring relay makes much

sense anymore I kind of feel like the community would one shout that out and be like you know why are you spitting up a censoring relay it's pointless uh no one should be using this one um and also I mean anyone setting up relayers now yeah if you're setting up a a censoring one I don't know if there's really much of a market for that anymore considering that we have more non-censoring ones right now we have six of them and actually seven including iOS this year we have seven non-censoring and and four censoring relayers and the four that are censoring I mean the vast majority belongs to flashbots and obviously flashbots right now he's I mean they are the creators of Mev boost they believe their Builder and their relayer infrastructure is the best out

there right now just because it's it's obviously still very young um but the other ones that are there some of them are gaining market share I mentioned block native yesterday and there's also Eden Network and I believe manifold as well um but just generally yeah I don't know if I see someone launching a censoring relayer I'm personally going to call it out and be like you know why are you launching this this is just kind of pointless as I've been calling out the other ones but I always love uh obviously calling out the non-censoring ones for the right reasons here so as I said this one has been uh put together by the eth finance and Eve stagger communities you can go check out the website which I'll link in the YouTube description below as well as the uh Reddit post here as well Last Stop on the Mev watch uh boost

front is this other website that I came across today called Tornado warning dot info uh this is pretty fun because it's basically visualizing uh I guess like tornado warnings but like it's referencing tornado cash not actual tornadoes um and yeah it says yeah but where dangerous tornadoes side excited at the relays of blocks route and manifold some carry innocent money and and come completely uncensored zoom in and click the tornadoes to see their region and you can kind of see here and links to a kind of a block here of uh where the uh the tornadoes actually are so obviously none of these tornadoes are going to be in the censoring relay uh territory because I mean it doesn't make sense for them to be there because obviously the centering relays are not going to process those transactions so it's just a way to visualize where the tornado

cache transactions are actually getting processed on and there actually are still tornado cash transactions obviously it's come down a lot since the ofax sanctions happen but they're still there and they're still getting processed because we have those non-censoring relayers live as well but yeah there's a lot of resources there for you guys to check out obviously all of it will be linked in the YouTube description below but just figured it was worth talking about all of this as as I believe the Mev boost and censorship stuff on ethereum is still the most important thing right now I mean obviously there are other important things that are orthogonal to that such as withdrawals being enabled on the beacon chain there's no new updates there by the way I should mention that there was a core Dev call but we're still in limbo a little bit but there is

a low chance that 4844 is going to go into Shanghai withdrawal's definitely obviously going to Shanghai it's kind of they're trying to also get the other upgrade the eof upgrades or erps I should say into Shanghai as well and they're still targeting that March April timeline for that but there is a little bit of I guess I wouldn't call it drama but there are some core devs pushing back saying that they want to see a 4844 in Shanghai and and even if it delays uh Shanghai by three months it's worth it yeah I don't know like it's a very subjective thing because I honestly don't think that withdrawals coming three months later so say they come in like June or July is that big of a deal if we get 48 44 at the same time because if we don't do 48 44 in Shanghai

it'll be at least six months before we see that live on the network so yeah I mean I kind of see that reasoning there but as I said it's swipe in the air I do put like a lower a lowish chance on 48 44 going in but we're gonna have to see how that shakes out but as I said those are orthogonal things to this and they're still very important obviously but in terms of what's facing us right now and what we need to definitely focus on it's this all right so uh there has been an update to the rockapool smart node stack which is version 1.7.1 it is now live this contains a few small fixes and new features but most importantly updates almost all of the clients to their latest versions now I believe this is a medium priority upgrade for mini pool

operators uh out there so definitely upgrade when uh you can I've already upgraded mine it's a very seamless process it's the first time upgrading my smart node stack because it's my first smart note stack update coming out when I've been running a mini pool I usually highlight these but my first time actually doing it and I think obviously the most important part is the fact that all the clients have been updated to their latest versions or almost all the clients in this update so yeah if you run rocketpool infrastructure here but obviously the smart node stack then definitely check this out and upgrade I'll link it in the YouTube description below all right so I remember mentioning this emerge data challenge a little while ago on the refuel well the winners of the merge data challenge have been announced now so data scientists engineers and

developers spent weeks Point pouring over Data before and after the merge and the winning findings can be found at the ethereum foundation blog here so basically the prizes were given out in three different tiers gold silver and bronze gold uh got 30 000 prize so gold went to pintail uh so pintail's article here uh since the merge how are things changing and I remember I highlighted this uh this blog post I believe when it first came out and then also one from foreign attestations in data so they both shared the gold price here then I'm not going to read them all out but there was silver and bronze prizes given to a lot of familiar names that you can go check out but basically if you want to look at and pour over all the data from before and after the merge and

everything obviously got to do with the merge of things from from Mev to uh to Ultrasound money to I guess like issuance and the impact on 12 second block times and on on defy you should definitely go check all this out I'll link this in the YouTube description below but congrats to all the winners here it's great to see the ethereum foundation whole uh do things like this for things that uh I guess like a little bit maybe orthogonal to what we want to to what we usually uh or to what the ethereum foundation usually funds they obviously give out a lot of Grants to open source software development developers but this was given out to people that were writing blog post writing analysis and and data analysis on the merge which is obviously the most important event ethereum's history so congrats to the winners again I'll link

this in the YouTube description below all right so uh Terence from the apply Labs team today put out a thread uh where he says the next capella hard Fork introduces withdrawal to the consensus and a the execution layers so how does that affect the Builder layout I.E MAV boost relays and Builders tldr there's not much there's zero more complexity if relayers and Builders run the correct client version so if you're just interested in learning a bit more about this and getting a bit more into the weeds of how these things work as a short thread here from Terence that I just felt like was worth highlighting which you obviously can find in the YouTube description uh below but yeah I mean when looking at upgrades for the ethereum chain generally it's all about looking at the complexity that it

introduces and the I guess like stakeholders that it impacts uh on on both the I guess positive and negative side there have been upgrades that have gone into the network before that negatively impacted some apps uh some of them included the uh the um retiring of the op code that will allow the creation of the gas token that definitely affected a bunch of apps especially one change that was using it a lot as well and there was a few others out there that have broken old smart contracts but the reason they're done is obviously to improve the chain and the Outreach is done and these projects are basically worn and said hey you know the you know this is what's going to happen uh because of this this and this reason and it's only really pushed forward if it's a small number of projects that are

affected rather than obviously a network-wide thing but then when looking at things that could potentially affect network-wide stuff like Mev boost it's definitely good to and prudent to see if they had any complexity what are the negative and positives and all that stuff there obviously with withdrawals the big positive is that we're finally closing that Loop and we finally can say that ethereum is I guess like 100 proof of stake because we have withdrawals enabled and I've gone through the benefits of that before but it's always good to see you know how it could potentially negatively impact things such as uh the Mev boost infrastructure here which thankfully it does not as Taran says here there's zero more complexity but only if the relays and Builders run the correct client versions which they should be doing anyway

all right so I remember highlighting this uh tool that Liam was building basically in response to the tornado cache front end being pulled down and also other front ends in uh I guess The Defector system not being decentralized right being centralized and I've gone and this was called the dapnet client uh basically it allowed you to run uh local versions of these front ends in order to you know to prevent you from getting censored or to prevent any censorship from going on and I've talked about in the past how with ethereum you basically can achieve this you can run your own node locally relatively easily I mean I highlighted the other day that you can run a full node and validators on a rock 5B board which is very very low power very uh uh kind of like um low Hardware

uh board there as you can run that and you can use it as your own RPC you can run any wallet that can connect to it using a custom RPC whether that be metamask or uh you know or anything else there I think it's frame as well as another one that people are using these days uh and then you can also run your own front end and because the ethereum back end especially the back end that is a fully decentralized those smart contracts such as unisoft smart contracts are fully decentralized you can tap into them and be a fully self-sovereign ethereum user so what the reason why I bring this up again today is because Liam teased that uh he's just integrated a wallet into the dapnet client and have some great ideas for where to go with the user experience from here now this video is uh is I

believe quite small you can't really see it on the screen and if I go full screen uh I don't know if that's coming up I I think it does come up actually if I go full screen so you can I can't see my camera right now but you can basically see uh the connect wall interface yarn as I said it's a video so you can go through uh and check out connect well and then you've got the Quinta app loaded up here so you can go check out the video it's 14 seconds long I think it's more of a gift than a video uh but great to see him uh see Liam continuing to work on this I think this is very important this is definitely something that I feel like needs like a whole team on it needs funding and people will actually use this and the thing is

though it's more of a public good I don't know if you would monetize this in any way I don't know what Liam's plans are for this it seems like a side project for him right now or maybe it's not maybe it's a full-time thing that he's he's focusing on and it's just in very early stages uh but uh yeah anyway go check out this little video I'll link it in the YouTube description and below all right so something really interesting that uh Queen Ledger has introduced uh today they've called they're calling this the nft Lost Harvest store adapt that buys a liquid nfts to help you claim losses and reduce your taxes and they explain how it works in this thread but the tldr is that this adap automatically buys your NF any nft in your portfolio for 0.00001 eth thus allowing you to realize

any losses on the asset now I asked our resident tax expert Merlot in the daily gray Discord if this would be something they would be considered trying to I don't know create a loophole or trying to get around having to pay taxes on things but the reason why people would use this would be because the nfts that they are selling are a liquid they actually can't sell them on the open market because their nfts are basically gone to zero they're worth nothing there are no buyers for it there's no liquidity at all for it that's why they're illiquid nfts or liquid jpegs so instead of that just sitting in your wallet you can actually claim the loss on it and Merlot describes that there's actually a service for this in traditional Finance for he calls them Boomer shares

um where you can basically sell things that have been delisted claim the loss on them and kind of dispose of that asset so if this is something you're interested in maybe you bought a lot of nfts during the last 18 or 12 to 18 months and you haven't sold them and now they're worth basically nothing and there's no liquidity for it but you still want to tax uh lost Harvest here and this is a tool for you and you can actually have some really big tax uh savings here and uh coin Ledger describes this they say you know say your name is John you sold Bitcoin at the height of the market in Spring of 2022 and realized fifty thousand dollars in capital gains by doing so these 50k is now income that John has to pay taxes on as much as 37 percent or 18 500 to

Uncle Sam so there's obviously using U.S tax brackets here but what if John also spent thirty thousand dollars buying nfts that are now essentially worthless by harvesting his nft losses and selling John reduces his taxable gains to twenty thousand dollars instead of 50 2000 because it's fifty thousand minus thirty thousand John's tax bill is now just seven thousand four hundred and he saved eleven thousand one hundred by lost harvesting so this is very important I mean seriously guys you should really look into this um your I mean obviously this isn't tax advice and obviously you should be talking to your own uh your own accountants or or tax advisors but this is taxes 101 this is tax loss harvesting 101 this is how you reduce your tax bill uh by selling assets that I mean especially with nfts that

basically have a zero percent chance of ever coming back and ever being liquid again so you can get rid of them dispose of them for as I said this smart contract will automatically buy it for just like a stupidly low price work that out and save some some money on on taxes yeah so yeah definitely go check this out from Queen Ledger I don't think they're the first ones to do this but they're the first ones I've seen that have done this so you can go to nft Lost Harvest Store with three three O's uh.com to check this out but I'll of course link this thread in the YouTube description below but definitely something you should take advantage of I don't really have any that I would be selling on this maybe I do I've got to go look through it but I didn't really

buy many nfts I kind of stood clear of most of them and any that I bought that were worth something I think I already sold um whether that was in a a profit or loss but this is definitely for those ones that are a liquid that literally there are no buys for the volume is basically zero over the last you know maybe a few months uh there's no way you could sell anyway uh so you may as well just sell to this smart contract that'll just hold all these worthless liquid jpegs in order to realize that loss and then carry that uh forward or tax loss Harvest I should say in your tax return but as I said this is not tax advice don't do this just because coin Ledger is saying that this is how it works or I'm saying this is how it works uh

definitely expect your own Tax Advisor because every jurisdiction is different and then you can get advice from them and and and they will tell you whether that you can do this or or not so yeah as I said I'll link this in the YouTube description below for you to check out all right a little thread here from Aztec today so they've said please to announce that Aztec connect has cost 50 000 each shielded since launch that 60 million dollars of eighth now being sent and earning yield privately they've also crossed half a million Network transactions and 5 000 blocks in production so I like this little update that they do showcasing that Aztec is growing albeit you know slowly I guess like half a million Network transactions is nothing to write home about but I guess for a brand new protocol that

doesn't have liquidity mining or anything like that that is definitely uh you know brand new on the Privacy side of things as well and more expensive than other layer twos because of that privacy stuff the fact that people are actually still using it and using it in a I guess like a big-ish way obviously if you're comparing this to things on mainnet it's not that big but I think comparing it to it to itself and seeing the growth continue here is very very cool and something that I want to highlight because Aztec is that other I guess big privacy tool that we have on ethereum there were two major ones and there still are two major ones right tornado cash and Aztec and there are others out there that are being worked on but in terms of being live in production Toyota cache obviously got

neutered a lot by the sanctions um but Aztec hasn't been sanctioned I mean yet maybe they will be in the future but they do have their own protections that they put in place but as far as I know they're not censoring anyone I think those protections uh were basically limits that they put on on accounts and obviously those limits are are probably relatively easy to get around but still I think it's worth mentioning but just generally I like highlighting all of the Privacy uh tools that are created that are being used on ethereum mainnet and obviously Aztec is one of them which you can go check out if you haven't yet at ZK Dot money all right so a rainbow uh announced today that bridging and cross chain swaps have come to the rainbow wallet so they've designed swaps and bridges into

a unified experience that's easy to use you can go from eth on polygon to usdc on optimism from the same swap interface you know and love each chain has their own benefits and their own vibrant ecosystems full of uh stuff to explore rainbow makes hopping and bridging so seamless that you almost forget you're moving between chains this is cool uh and they're they're using um sockets uh hop and across for the infrastructure in the back end here the reason why this is cool is because look at this interface it's very very simple right it's so simple that it's basically like a uni swap trade except it's using these three uh bridges in the background to swap between different chains and I've said before that obviously with a multi-chain architecture whether that be other l1s or l2s or side chains or whatever just

hopping between different chains is going to one break ux or break the user experience for for users in bright liquidity but they're not critical problems they can be resolved and I think that the ux of bridging is really great these days honestly I've done it a bunch of times and it's always been seamless for me and also the fragmentation of liquidity hasn't been that much of a concern because that bridging is quite easy and if you are a big player that needs lots of liquidity layer 1 still has plenty of liquidity for you it still has the majority of it so you're just sitting on layer one anyway and I remember arguing uh for arguing this point quite a while ago when I where I said that there is no motivation for big players to move their liquidity from layer 1 to Layer Two

because they don't actually need the gas savings so the people moving to layer twos at this early stage are people who actually benefit from the gas savings and those aren't by by very definition aren't going to be whales because whales don't care about spending 100 on fees if they're moving millions of dollars right whereas a small player who has a thousand dollars obviously 100 is 10 off their transaction they're not going to uh want to do that they're going to care very much about fees so so layer one will remain that kind of liquidity hub for Wales but Wales will also go to layer twos if they see opportunities there as well I mean obviously uh there are a lot of people already on there and they have a lot of money on there and they're playing around with it but they're moving there for opportunities

uh for you know making money not so much for saving gas fees whereas regular users who aren't whales are going there to save money and for money making opportunities as well and to use different apps and and to get value out of them um but in terms of I guess fragmentation of liquidity we've definitely seen obviously liquidity migrate from layer one to layer two but I think Layer Two is just creating its own liquidity and there are certain chains that have more than others but the fact that you have this bridging now and you have these cross-chain swaps just makes it much more seamless so if you see that okay well look I need to go to this train because this train has an app that I want to use but this chain doesn't say it's on optimism and not an arbitrim then you can very easily go from

Armature and optimism using one of these Bridges and if you're a rainbow wallet User it's just even more seam to go through all these assets which is very cool now obviously the interface isn't the simplest it can be uh you know it's still showing the gas fee here or still showing fees in general which is fine I think because honestly like until there is a service that just sits on top of this and eats the fees for users in terms of gas fees there's always going to be that fee there and a lot of the time you actually see the fees online when you're doing um transactions certain types of transactions um but then there are other times when you're not because the Merchant's editing the fee so for example a payment processing fee usually the merchant eats that that's why you don't see that so in

crypto there's going to be a service that sits on top of this stuff that basically eats that fee and it's the the network fee and then you won't have to see a feed or just be baked into the price I mean the merchant okay I shouldn't say the merchant always eats it it sometimes passed on to the to customer depending on the fee size and maybe it's not actually itemized on your um your interface that you've got maybe it comes as a separate invoice where it actually tells you and breaks it down for you but usually the merchant will eat it if it's like a 30 cents transaction fee or something like that they're not going to charge for that but credit card fees I mean it's a bit different uh and it just depends on on obviously what card you're using and things like that as well uh but

generally I love these interfaces because they're very simple still gives you all the relevant information that you need and allows users to get that seamless experience all right last up here is a blog post that vitalik put out uh today called what in the ethereum application ecosystem excites me now he's got uh I think four or five things here let me just quickly count I think it was uh I think it was five yes so he's got five things here which I want to go through because I actually agree or generally agree with most of the stuff that he's excited about so the first thing he calls out is money the first and still most important app of crypto this is obvious I mean without money like nothing that we've built would really work or really have any value or people would care about using there are certain

things that are being built right now that aren't really considered to be something that the money side of things is driving so for example uh web 3 apps like lens protocol that's trying to decentralized social media there are monetization things there but the money aspect of crypto isn't something that's driving that primarily whereas D5 relies on the money to come first like without Ethan without stable coins D5 wouldn't work I mean there would be no I point to doing defy and uh money being at that base allows all these different things to be built as I said D5 with lending and swapping and and credit and all that sorts of stuff um but then you know payment is also a big thing here like the the the the

number one use case of blockchains today is stable coin rails like you look at the amount of volume that stable coins do on These Chains It's always uh uh very very high and it is the most dominant app today and moving ether around obviously as money is also very dominant eat his money in the nft ecosystem it's money on chain and default ecosystem um and just like payments in general are very very popular not just for Arbitrage moving money between exchanges moving money between uh different wallets but also for just engaging in Commerce and things like that it's not as popular obviously spending your crypto is not saying people generally want to do but I use uh uh stable coins pretty much exclusively for I think every single annual investment that I've done except

one I've used stable coins for um and that's simply because it's so much easier than you using the traditional Finance system I literally request for them I'm like hey can I please send a stable coin to an ethereum address instead of going through a wire because it's a pain in the ass to go through a wire especially uh you know a wire to certain jurisdictions around the world uh it becomes a thing where the bank might flag it and say Hey you know why are you sending money here it's like well I'm you know investing in a project I have to like ask all these questions about it and then they'll unlock and release the funds and then obviously sending a wire takes longer much much longer you don't really have any visibility over it whereas sending stable coins on ethereum within uh you know one ethereum block if I pay the

right fee it's already delivered to their address I can verify it for myself that it got delivered there so they can't actually lie to me I they can send me the address I can say okay well this is the address that I sent money to here's the transaction hash I send it to you if you don't have it then that's you know that that's on you sort of thing or maybe you sent me a wallet that is part of an exchange and the exchange didn't credit it to you or anything like that that is just so stupidly powerful and that's why money Remains the first and still most important app as as vitalik calls it here uh the second thing he brings up uh is D5 you know keeping it simple with D5 obviously as I said D5 is enabled by money so without money you

couldn't have defy uh but Defy is the thing that's got the second biggest product Market fit in crypto as I said first is stable coins and just like money and payments in general D5 is second secondary to that because without as I said without I'm repeating myself a lot here but without money and payments you can't have defy so that's an obvious one I don't really have to go into too much detail there then he says the third thing the identity ecosystem such as ens sign in with ethereum proof of proof of humanity pull-ups and salt bound tokens I think this is very important as well because ens is used a lot within the crypto ecosystem signing with ethereum is also used a lot proof of humanity is used uh for things like Bitcoin and a few other things out there pull-ups obviously extremely popular and soul

bound tokens relatively new but you know people are using them more and more as time goes on and for you to have a proper on-chain economy and ecosystem you definitely need identity to be attached to that not there yet identity it comes in many forms it doesn't mean doxing your real life identity it just means having an online identity whether that be as an anonymous person or whether that be a someone fully docks like for example I could have an ens on chain that no one knows belongs to me I could not name it anything I want and then do stuff on chain and maybe become like an Unchained celebrity because maybe I made some really good trades or I hold some really rare nfts but no one needs to know that's me right there are ways to definitely keep that private but I think identity in general is obviously

very very important uh then you have dows dows I do agree that Dallas are important and there are a lot of dows right now but the problem with Dows is that a lot of them are broken a lot of them don't really function as advertised so to speak a lot of them are centralized so that the D is just like completely non-existent because these tense feel decentralized price doesn't doesn't exist at all there needs to be a lot more experimentation to actually see what works and what doesn't which is what we're doing but I think we need to give it time to bake here but at the same time I feel like dowels are just working their way back to Corp governance and corporate governance isn't bad corporate governance works and it works really well for I mean the corporations that use it well uh there's

a reason why it's being used to scale up corporations to as big as they are I mean there are corporations that are bigger than countries right so I think Dallas will get to that point but what they'll do fundamentally is they'll change the I guess like uh the stakeholders of that governance system so it'll be a worldwide thing it won't be tied to any jurisdiction it'll be Unchained you know ethereum will be the governor of that Dow of the the laws of that Dow smart contracts will be the governor of that it won't be a real world thing um and members can join from all over the world it's more it will be more merit-based hopefully um but still it'll fall into the same pitfalls that traditional governance structures fall into such as nepotism right you know um and just like uh the social layout becoming very convoluted

over time especially the bigger the organization gets we've seen Dao's become too big they fall apart things you know going to a halt and and obviously it affects the project in a really negative way but still dowels are very very powerful and can be very powerful and I'm glad that vitalik called it out yeah now as I said this is a blog post and this is just my brief thoughts on each of the ones that think that each of the things that he called out so you definitely should should go read the blog post if you haven't yet I'll link it in the YouTube description but I just figured I'd give my little high level overview here but last up we have uh hybrid applications and develop metallic defines these as applications that are not entirely on chain but they take advantage of both blockchains and

other systems to improve their trust models and he says voting is a perfect example here as mother examples he gives government Registries corporate accounting games supply chain applications and tracking access authorization I think games is a pretty key one here uh there as I've said before games they're going to be there are going to be crypto games but like the majority of what the game is is probably going to just be off chain and unchain will be things like the assets and maybe game moves and save states and play our information and stuff like that whereas the actual game itself the world is probably going to be hosted off shame because you can't really host that on chain um for for proper like you know full-blown AAA 3D games maybe four text-based games and stuff like that you can probably do it on a layer 2 or a

validium but definitely in a traditional database architecture and traditional um non-blockchain infrastructure would work better there but anyway I've gone over time here just noticed but as I said the blog post Linked In the YouTube description you can go check it out but that's going to be it for today so thank 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 newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone