New crypto bill, Devcon6 details and more - The Daily Gwei Refuel #380 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the delegate refuel where we cap the latest news in ethereum ecosystem i'm your host anthony susana and today's the 7th of june 2022 all right everyone let's get into it so over the last few days there's been uh kind of like this anticipated bill from senator cynthia lummus in uh kind of like the u.s here around a new framework for regulating uh digital assets or crypto assets now there's been a lot of fud around this there's been a lot of kind of like uh i guess some speculation about exactly what this would entail there were a bunch of people trying to paint the picture that eth would get classified as a security and i was just like okay that's just bizarre it doesn't really make any sense but anyway we have the kind of like uh kind of uh i guess not the exact bill

yet or not the exact kind of like legislation but we have kind of like uh i think what is this if i kind of like scroll through this i this just came out so i'm just kind of looking at it myself we basically have like a a forward from uh from the kind of like people describing this bill uh oh actually no the bill is here as well sorry okay here's here's the bill so this is called the responsible financial innovation act which is a regulatory framework for digital assets now i haven't read the whole thing as i said this just came out before i hit record but basically if i was to search for eth i came up with basically what i kind of like said here where and i quote this is what said in the kind of like framework it says digital

assets that meet the definition of a commodity such as bitcoin and ether which comprise more than half of digital asset market capitalization will be regulated by the cftc which is the commodity futures trade commission in the us that is not the sec obviously it's a different regulatory body which means that uh this bill would basically state that uh bitcoin and eth are not securities uh so yeah i mean this bill isn't law yet it still has to go through kind of like you know the whole process of getting a bill into law but this bill contrary to the popular narrative over the last couple days is not proposing to label eth as a security and it's good that they've kind of like named ethia rather than kind of like leaving an ambiguous but obviously there will be some assets that will kind of like be labeled as

security right they're apparently well according to uh this account db on twitter which basically did a little bit of a summary here um the the other kind of like provisions of this bill include you know purchases of goods and services under 200 using crypto we tax free uh favors the cftc is crypto's watch watchdog given authority over spot markets most coins would be defined as commodities overseen by the cftc gives legal clarity on how to handle customer holdings clarifies quote unquote crypto broker meaning to protect wallet providers and developers 100 reserve asset type and detailed disclosure requirements for all payment stablecoin issuers i mean this is what i expected like stable coin issuers getting regulated even heavier obviously that's going to happen right especially the centralized

stable coins uh and kind of like i guess uh the cftc becoming the kind of like watchdog i mean i expected that for obvious uh commodities such as kind of like btc and eighth but it sounds like there's gonna be other ones i think you know it's funny they're funny as kind of like uh it is and has useless as i think a lot of these things are something like a dogecoin or a litecoin i would consider a commodity i mean i don't consider those things securities right but there are certain assets within crypto that are clear securities i mean xrp to me is a clear security uh bnb is actually a clear security and on that note uh i i kind of like put out a tweet asking why are people surprised that the sec thinks that b b is a security there was actually a news story that broke

today that the sec is going after uh kind of like b and b for i sorry binance for b b and then i continued in my tweet by saying you know besides xrp i think uh bnb is the most obvious security in crypto i mean it lives or dies based on the activities of one centralized mega company that owns most of the supply without binance b b would be essentially worthless like it doesn't really have any worth beyond binance but even if you were to argue that bnb is used heavily within the binance smart chain that uh kind of like ecosystem is only held afloat by binance like it there's not there's nothing else going on there if binance isn't i'm not participating in that sponsoring that uh getting users from the exchange to that so bmb is pretty much like reliant on binance and

100 relying on binance i should say which makes in my eyes a clear security and i think as much as i don't like the sec they kind of like i think have this one right so uh i kind of like on on that front uh you can kind of like look at the rest of the news here it's actually pretty good like i'm actually really happy with this news i think that uh obviously this bill isn't going into law probably anytime soon i'm not sure kind of like what the speed will be like here and you can read the whole kind of like bill as well or at least kind of like the highlights of it from uh from kind of like this blog post here which i'll link in the youtube description but this is like great this is a great outcome in my

eyes i think this is killing the stupid fud that kind of like uh i guess um permeated over the last few days especially around eight like i saw there was this one account and it was shared in the discord channel that basically put together a tweet thread explaining why they think is going to be classified as a security in this bill and why uh btc dominance is going to go up and bitcoin is going to go up and holding anything else but bitcoin is going to get you wrecked and i i read that threat and i'm just like okay this is one it's a this is basically a conspiracy because um there's no uh there was no indication that eth was going to get classified as security and two they used the thread basically to shield uh some technical analysis on bitcoin on bitcoin dominance on a budget

on the ratio on the fbc ratio and a bunch of different things and i'm like this is just weird like really it's just kind of like feels like a trader trying to push a narrative and it feels like a lot of traders are trying to do that right now they're all positioning themselves as kind of like bearish on 8th for you know a number of imagined reasons and you know then the kind of like the the narrative around the merge being risky started coming to the surface and stuff like that and i don't know like i don't know guys like i look at these sorts of stuff and i'm just kind of like uh like what's going on like why are people doing this and then nine times out of ten it's just got to do with the fact that they're just trying to push a

narrative because they have a trade on simple as that i know that might sound may sound kind of like but not more benign than kind of like something and an alter ulterior motive beyond that but that's really it at the end of the day people just want to make money and uh one of the kind of like easiest ways to make money is trying he's jumping onto popular narratives and trends in the short term now i say easiest and i don't really mean easy i mean kind of like that's the way people uh i guess especially experienced traders they may kind of like only open a position for a few days or a couple of weeks but it would be enough to inch out some profit for them that they'd be happy with so if there is a popular narrative going on they just add fuel to that fire and

you'll see a lot of these traders just flip-flop between narratives and they never actually kind of like have a long-term thesis or a long-term narrative here uh they they are they definitely uh flip-flop between them and just uh off-topic for a sec i've actually noticed myself saying kind of like the last the last couple of minutes and now i'm annoying myself with it like as i said in the youtube comments someone called me out on it the other day i said in the youtube comments that i don't notice myself saying it at all it's a subconscious thing but now i'm consciously noticing it and i'm like why am i saying it i mean i just did it again anyway uh back back on topic here um yeah i just think that like uh don't listen to those kind of uh those kind of like narratives don't listen to those uh

those narratives on on twitter especially from short-term investors and traders and and things like that if you are a long-term investor then really i mean you can look at traders for guidance on things if you want but at the end of the day you shouldn't take their word as gospel or as kind of like anything to be seriously taken because you're an investor not a trader at the end of the day anyway you can go read this uh this kind of like bill here where you can basically see everything that's in it i'll link it in the youtube description below and you can go check that out uh and kind of like this from from the db account as well but i think i'm gonna move on from that for now on to uh this tweet that i put out where i basically said robsten testnet merge is

happening very soon uh it's the seventh today it could happen tomorrow but it could get pushed to the ninth depending on ttd obviously with ttd we don't know the exact time that it could happen uh it's kind of like hard to estimate but expect it within the next 48 hours i would say like any time within the next kind of like 48 hours which is super exciting obviously this is the first public test net to be merged as i mentioned yesterday i think yesterday the day before if things go well with this if all the clients are able to kind of kind of like talk to each other and and kind of like sync with each other then definitely we will have a better idea around i guess main net from this but at the same time there's still two more public test nets to go after

this there's obviously the shadow forks that are going to be continuing but uh this is the biggest event since the testing began i think for the merge because the shadow folks are all well and good but uh you know they are taking kind of like the live mainer network and they're very important but i think doing this in such a way on kind of like a public test net is probably uh a bigger event so i'll be uh definitely keeping an eye on this hopefully it doesn't happen when i'm sleeping there is a pretty high chance that it will happen when i'm sleeping but we'll have to see when ttd is reached the core devs will keep us updated on twitter with this as well i'm just super excited for it this is gonna be a big deal guys like seriously i think um even if there are issues with the the

the kind of like merge on this test net here i think they're gonna still proceed with the other public test nets and by issues i don't mean anything major i mean i mean okay so on the recent shuttle shadow fork six there as i mentioned i think there are a couple of minority clients that that uh either weren't able to sync or something went wrong and it was kind of it was a it was a it was a little fix that they had to input uh and they did that and i think it's fixed now i don't know when shadow fork seven is uh i haven't kept up with the last couple of days it may be scheduled already but maybe they're waiting till after robsten is done to do that but that's definitely going to going to happen there i think we're going to do more shadow forks while the

test nets are running and i think they really want to get as close to perfect as possible maybe there's still one or two clients that have some minor issues that prevent them from doing you know that from everything being like 100 perfect i don't think that would lead to any kind of uh just delay i guess quote-unquote delay in the merge timing but as i said we're going to have to wait for robston to see kind of like uh the more accurate timing around this so that's what i'm waiting for expect it within the next 48 hours or so all right speaking of the merge our light clients here on twitter had a great tweet thread today and he started it by saying after the merge there will be a much larger fraction of quote-unquote at-home block producers than we've seen under proof of work in

order for these independent stakers to extract mav we need to think differently about our approach to block production and this is a thread here i'm not going to go through the whole thing because it is quite a technical thread and also quite a long thread just wanted to highlight it here because of the fact that it's very important i think especially if you're a solo staker and other things that you should be researching around this is pbs which is uh proposal builder separation which i've mentioned before you should be researching stuff around mev there's a bunch of links to this in light clients thread here so you should definitely check that out if you haven't yet and kind of like check out all these all these links and stuff here as well but i just wanted to kind of like highlight this thread for you guys so

that you can uh go and give it a read and learn more about at home mev because look um depending on what the mev looks like in a post merged world and the the extra yield you could get there might be solo stakers that basically say well does it make more sense for me to join a pool for example and we obviously don't want that to happen we don't want solar stakers to not be solar stackers anymore just because they're maybe going to get one or two percent extra yield from a pool and that might mean a lot to them because maybe they're a big at-home solo staker and that's kind of that's a lot of money to them so in this thread like clients explains how your solo stackers can potentially kind of um extract this mev and other kind of like strategies here as well so definitely go

give this thread a read all right uh we've got a new blog post here from patrick mccoy uh which is titled mental models for layer one and layer two and he started he kind of posted this to twitter with the caption saying layer one and layer two systems have different trust assumptions system architectures and agent participation our community has the wrong mental model to evaluate and compare l1 l2 systems i put together a short blog post to help demystify it i highly recommend giving this a read it's a great blog post i think i mean i think when it comes to layer one layer two the terminology at this point in time has lost some meaning and has also confused people and is also

more marketing than than kind of like uh uh i guess accurate framing at this point in time i think that's why patrick put together this blog post but essentially what the most important thing is is the bridge contract the actual contract that custodies the funds or holds the funds when you go from an l1 to an l2 or an l1 to a side chain or an l1 to another chain because that will determine what your security level is so for example when you bridge from ethereum mainnet theorem layer one like all the kind of ethereum that we all know and love the the one with the high gas space right and you bridge your assets into one of these quote-unquote layer twos such as optimism or arbitrary any other other kind of uh roll-ups that

post both their data and and proofs to layer one ethereum they have a bridge contract that you go through and in that bridge contract is all the funds and i've explained bridges before on the report so i'm not going to rehash this here but that bridge contract is secured by ethereum right that's secured by ethereum layer one it's secured by miners today in the future it will be secured by ethereum's validator set now if you bridge off of ethereum in one of these car in one of these bridges uh onto another layer one or onto a side chain well then your assets are not custodied by a chain that is secured by ethereum anymore that chain is secured by its own validator set which means that the assets that you have on ethereum can

only be unlocked by uh providing um a kind of i guess a signature or a message from that other chain to come to come back or if there's a multi-sig for that contract on ethereum then potentially the people who control that multiseed could release those funds to the relevant addresses but that would be messy for a number of different reasons so essentially if for some reason you were to just as a basic example lose those funds on say you bridge to uh i guess like avalanche right the c chain because it's an ebm chain and it's a distinctly separate layer one say you you bridge over to there and you lose your assets on there while those assets are going to be forever stuck in the layer one ethereum bridge contract that holds those assets when you bridge across now of course the bridge i believe is behind

a multisig and they could be withdrawn from that multisig by the uh sorry from that contract by the people who hold the multisig but that's the only way it could be done if you lose your assets on avalanche even though you bridged it say you you bridged eighth from ethereum to avalanche if you lose it on avalanche you're not able to get that eighth back because it's it you don't have you don't no longer technically have that eighth right you don't have that iou on the other chain so it really is all about uh bridges at the end of the day bridge security what how the bridge is secured what's securing them you know is it ethereum layer one or is it another chain and that's kind of what determines layer ones and layer twos but at the same time there are some people calling things layer twos on

ethereum that don't post their data to a theorem that's a whole another kettle of fish because those things are technically validiums or optimistic chains where essentially your funds can't be stolen but if you don't have access to the data that's kept off chain then you're not able to get your funds out even though the bridge contract is still on ethereum it's still secured by ethereum because that data isn't posted to ethereum the ethereum doesn't know that the the state of the world the theorem doesn't know the state and doesn't know what what to give you uh doesn't know what kind of like the state of your your assets are and it will basically reject you from from being able to access them without access to that data that matches the the kind of um the kind of the rest of the construction there so that's why i

always hop on about bridges and i always go on about bridge security and making sure you know the different trade-offs and things like that and i think patrick in this blog post does a really great job of explaining all of that so you just you definitely check this out but i wanted to give my own little breakdown there as well because i think it's critically important to understand and you know i think an even i guess maybe simpler example is when you send your ethereum sorry your eighth from ethereum from your own wallet to coinbase for example your ether is going into coinbase's address now your if is still secured by the ethereum network because coinbase's address lives on the same ethereum network as you do but the thing is is that coinbase controls your funds the only way you're getting access to those

funds again is if coinbase allows you to do that doesn't matter that the funds are secured by ethereum you're technically bridging in to coinbase for example um you're technically like it'd be like me sending my eighth to uh a friend and then uh saying to the friend hey can you hold this uh this eighth for me uh for a while for whatever reason right um and then can you send it back to me whenever i want it if i go to that friend then i say to them hey man like i want my eighth back now can you just shoot it over and they say no well there's no way for me to get that back now because they're the one that essentially holds uh the keys even though it's secured by ethereum they hold the keys they hold the the access to my funds so similar

concepts all around here but i recommend giving this blog post to read for a further breakdown but hopefully that makes sense to you guys uh and if you if if you need further clarity on that definitely discord channel of course message me on there i'll be happy to answer any questions around that but there's yeah there's lots of documentation or lots of uh literature on bridges at this point in time as well some of it is more complex than others but i'm sure you can you can find it if you kind of like google for it as well and i've talked about it before in the past too there was one kind of covering basically as many bridges as possible someone from 1kx i think it was dennis maybe i think it was his name uh from 1kx put together a blog post uh basically covering the bridge

landscape and kind of what it looks like how your friends are secured and how to kind of reason about these bridges as well so you should check that out too i'm not sure what you'd have to google for that but i'm sure you could find it if you went to uh 1kx which is a fund googled them you'll probably work your way backwards from there as well all right sudo theos has another great tweet thread out today where he said what will the blockchain landscape look like five years from now here's my take on how it will play out so this is kind of like relatively short thread here basically talking about things like data availability platforms and and uh generalized layer twos and niche l2s uh and and l3s and and proto dang shading and dank sharding in general look the next five years i've written

about this in the newsletter before but the next five years in ethereum development is pretty amazing like really i mean all the things that pseudotheos tweeted about the other day that i actually spoke about such as dang shouting pbs layer twos all that sort of stuff is within the next five years we're gonna have all of that live like i don't expect i mean i expect it to be shorter than that but i don't expect uh any of the major upgrades that are left for ethereum to take longer than five years except maybe the i guess later very later stage things that are more like nice to haves rather than urgent things for the ethereum roadmap i think the current ethereum roadmap could get us out to 10 years the one that vitalike has shared on twitter before but in terms of the stuff that

i guess most i guess most needed like to get us to like 90 complete ethereum for example i think that's gonna happen within the next five years pretty easily obviously we have the merge coming up then we have uh proto dang shotting next year early next year hopefully with withdrawals and a bunch of other upgrades uh and then we've got like a bunch of other things like state expiry and and and uh kind of like layer two is continuing to grow and layer threes and all these sorts of stuff happening right there's a lot happening in the ethereum the kind of core protocol ecosystem but outside of that is the layer twos i mean the funny thing is is that each layer two can be considered its own chain it's just secured by ethereum instead of securing itself really at the end of the day these things are technically their

own blockchain but they're not a layer one because they're not securing themselves or not coming to consensus uh with their own validator set they're outsourcing that to ethereum layer one so their ecosystems could get you know huge right i mean the funny thing is is that i don't think that it can ever get as big as ethereum because it basically adds to ethereum and then ethereum is the sum of of kind of like its parts but it can get really really big like um not like and i'm talking about the generalized ecosystems there are obviously the app specific layer 2 such as dydx and loop ring loopering i guess is doing more but dydx is definitely the perfect example of an app-specific l2 but uh the generalized ones that we all know and love obviously like optimism uh uh arbitram uh what polygon is doing

stocknet zk sync potentially scroll things like that they are going to be massive if they succeed uh because of the fact that they're just platforms people can build on like they generalize platforms people can build on there's going to be everything that we've known love deployed to ethereum and so much more so i think taking all that into account the next five years guys like seriously if all you do is stick around for the next five years and then maybe you just like oh well like i want to try something else i think i think you will have gotten the most exciting parts out of ethereum like i think ethereum is always going to be exciting i think ethereum is going to be keep getting kind of like improved for decades to come but in terms of the most impactful stuff and the most i

guess like anticipated and and kind of like the stuff that we need done for ethereum to even think about mass adoption that's pretty much mostly happening within the next five years and you could stretch that out to 10 years for some of the nice to haves but within the next five years so anyway give this short thread from pseudotheosa read i'll link it in the youtube description and below for you to do so all right so uh awoke put out a tweet uh yesterday reminding us that git coin grant around 14 starts in two days there's a bit of a meme here i think it starts tomorrow uh uh tomorrow or the day after basically but yeah it's coming so you'll be able to donate as usual to your favorite projects on on get coin grants here and have those donations matched of course i'll be periodically reminding you

during the matching round to do so don't forget to do it you can do it at layer 2 which is obviously very very cool you can also do it by the polygon pos chain and things like that as well you guys know i'm a huge fan of git coin grants and git coin in general because i'm a huge public goods fan i think this is going to be one of the biggest rounds yet and i'm curious to see what it looks like in terms of uh in terms of kind of like output considering we're in a pretty deep bear market right now obviously the the price of ethan's gone down a lot people are feeling less rich than they were just a few months ago but i think that even during these kind of like times because git coin is such an ethereal public good in in of

itself and so dear and close to ethereum ethereums themselves the ones that stick around whether it's bull or bear markets they're still going to give i mean what i give you hasn't changed just because it's a bear market i will be giving what i always give to the projects that i that i really want to support uh and i'm sure there's a lot of other people out there who are doing that as well i mentioned the other day coinbase is doing a one million dollar kind of um donation buy a bitcoin grants and i think in this matching round they're going to match with two hundred thousand dollars there'll be a bunch of other matching partners as well i think and i think for this round there's a few new mechanisms too especially with the gtc token i saw some speed some talk around being able to kind of like stake the gtc

token or lock it up on a grant or something like that uh in order to do a bunch of different things i think austin griffith uh tweeted about this so you can go check out his tweet thread on that i'm probably butching the rex butchering the explanation there but definitely go check that one out uh but yeah i'll remind you guys when the round is live to go donate and everything uh like that all right finally here we have an update about devcon so for those of you who don't know devcon is the biggest ethereum conference uh bar none like it is huge and the last one that happened was in osaka in late 2019 that obviously covert happened and we haven't had one since the next one will be happening in bogota in colombia in october i think october 11th the 14th uh and in this

kind of like update today basically applications are now open so because devcon is so big and popular there is never enough tickets to go around so you can apply today or starting today as a builder a student speaker supporter or volunteer with ticket sales beginning soon and it's going to be quite hard to get a ticket i would imagine i'm still on the fence about if i'm going to go or not i really want to go like i'm pretty sure all of my friends are going to be there and like everyone that i haven't even met is pretty much going to be there i know there was some concerns about bogota that i've always brought up because of where it is and things like that but i think those concerns are like massively overblown i think people still think that colombia is like what they

saw in um what was that show about pablo escobar uh that netflix did i don't know i think people still kind of like have that mental mental model of colombia and it's like well no from everything that i've heard and researched it's nothing like that anymore and i think bogota is just like any other kind of like first world city at this point in time and apparently it's gotten much better even over the last decade so if any of you live there live in columbia i'd love to hear from you on this but i mean for me at this point in time it's just kind of like deciding whether it's uh it's kind of like worth the trip for me um and kind of if i can't even can i have to see if i if if i've got anything around those dates or anything like that but i don't think i

should i should so i'm gonna try my hardest to make it out to this and i'm hoping to see as many of you as possible there if i if i do end up going and if you end up going as well but the funny thing is even if you don't get a ticket i think even just going if you can uh and just kind of like hanging around it's still gonna be fine because there's gonna be a lot of side events like there always are uh so even if you don't get a ticket it might even be just worth going depending on where you are in the world i mean if you're like me in australia and it's a really big trip um not as big as europe i think but still pretty pretty decently kind of like long uh then maybe you don't want to kind of

like uh use that that up if you can't even get into the main event right but at the same time i i think it's still worth it to go to the side events if you if you're relatively close to there but anyway you can read this blog post it's quite lengthy uh and it's in different languages too i think it's in in spanish here as well as english um so you can kind of like read that as well for an update here but as i said applications are live today uh his ticket pricing here with different ticket types uh and kind of discount ticket applications as as well with main sale dates so the first main sale will be going live on july 18th which is i guess five or six weeks from now um just over five weeks from now and then they're going to have

other transfers july 16th august 3rd august 11th august 23rd so hopefully you guys are able to get a ticket there um hopefully i'm able to get a ticket maybe i can kind of uh sneak in as media i the other dev cons i went to i've only been to actually one devcon i i got in as media as part of ether but now they have the daily gray so hopefully i can get in his media um because i really want to go like i really do want to go but as i said i'm still deciding whether i'm going to go or not but i really do want to get around there so definitely go check this out if you haven't yet uh and with a couple more minutes left here just want to quickly mention something i i remember talking about this last week maybe i mean i talked about it

when i when i did that kind of like mental health segment but just generally guys like you you've seen what happened over the mark the markets over the last few days we went up and then we went straight back down like i've explained this to you guys before this is why you don't get your hopes up in a bear market this is why you don't look at these kind of like things and immediately think oh the pool market's back on yeah let's go live leverage long no no no guys like i'm telling you like this is going to happen a lot it's going to go up you're going to think it's going up more and then it goes straight back down that's just how it is like if this is your first bear market soak this experience in because this is a very valuable experience uh to get like um

and and i think it's i don't think the bear man's gonna last as long as it did last time but i think just soaking it all in getting uh kind of attuned with the market more if you're even if you're an investor but if you're a trader it obviously means more for you but just generally it it helps right it definitely helps with kind of uh uh you know having experience and helps next time like i know a bunch of you are looking to buy uh i guess i don't know if i call it the dip anymore but you're looking to scoop up some bargains on some other tokens out there look i don't know if these tokens like i'm not saying these tokens aren't going to go up in value again but i don't know which ones are going to go up in value

again i don't know which ones are going to be here and in even like uh you know a few months let alone a year from today and it's kind of hard to buy as i said because of the fact that it goes up and straight back down that's why a lot of people use a dca strategy or dollar cost average strategy uh because it just it works better than just going all in because for example say you kind of go all in uh at 2000 then it drops to 1700 well you've already blown all the money all your money and you can't buy the 1700 price point whereas averaging it over time is typically considered to be better because of that so i guess considering that and kind of i guess uh uh keeping that in mind uh will probably help you a lot i think

going forward it's helped me a lot i always think of that whenever i see the price going up now i'm just like i don't care until it gets to i think based on a technical perspective until it actually gets above 3600 and stays there we're not even you can't even think about going back to all-time high just from a technical perspective and just from kind of like a sentiment and trend perspective as well we're gonna have to get there but in saying that we could go back up and just hang around in the 2000s for a while and then hang around in the low 3000s it just happens like that as i said go look at the 2019 chart it's actually a very good indicator of what to expect going for but anyway enough of the market talk i'm gonna end it there for today so

thank everyone for listening and watching be sure to subscribe to the channel if you haven't yet give the video a thumbs up thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone