NFT growth, Compound governance, ETH chat and more - The Daily Gwei Refuel #14 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the 14th of december 2020. all right everyone let's get into it there's a lot to cover as we're going to be covering the news of the weekend uh and on friday as well so without further ado let's go so uh just a quick reminder before we jump into all the news the git coin grants matching round is ending this week i think the 17th of december it's ending so if you haven't gotten your donations in definitely go do so uh sooner rather than later don't leave it to the last minute sort of thing uh and as as usual the best way to support the daily guay and everything i'm doing is through git coin

you can make a donation to my grant here and it'll be matched as well which is which is really cool so uh yeah if you if you're so inclined i would really appreciate it uh and thank you to everyone who donates all right on to the news from the weekend so i wanted to i mean this isn't really news but i wanted to quickly give a shout out to tim baiko here um as he puts out this kind of ethereum uh thr all core devs uh meeting thread every two weeks so for those who don't know every two weeks the the core ethereum one dotto developers meet uh and they have like an open call where people can can some join if they ever requested to join and everyone can watch via live stream but if you

don't want to watch the whole stream uh to get all the meaty bits tim biker each time this happens this call happens he puts together a nice thread here so just i think just in general tim is like a great follow um at this point i mean i've spoken about him before how he's doing a lot of stuff with eip1559 um but he's also working on like so many different core ethereum protocol things like he does these threads with the core devs he works on he works at consensus uh as part of the quorum division are doing product work there and he's also part of the eth cat herders which is basically like a few people putting out like ethereum protocol related updates especially on the ethereum 1.0 side so i mean highly recommend following him these threads are always great because

it'll just basically give you the meat that you need to know about what's happening with ethereum 1.0 development you know upcoming kind of hard forks what's happening with test nets what's happening with upgrades like 1559 and other critical upgrades so i just wanted to give a quick shout out to tim there and i really appreciate all the work that he's doing if you're listening or watching tim uh yeah all right on to the next thing here so hayden adams from uni swap tweeted out basically he was quote tweeting someone else who said uh this is why cfi works so hard to steer people uh to bitcoin is because uh i mean and this was quote tweeting another tweet that basically showed a picture of uh eth moving out of c5 and into d5

basically um so the amount of fees on on on ethereum spent on each deposits to centralize exchanges has fallen from 25 in 2017 to less than one percent today so basically you know people are interacting with centralized exchanges uh kind of with their ether a lot less and that's why kind of hayden's put it hayden adams put out this um this tweet uh and he basically goes on to say that ethereum and erc20 tokens is mainly used in decentralized platforms or dapps such as uni swap because you know i mean as i've discussed before and as you've probably seen uni swaps volumes are challenging centralized exchange volumes at this point and then he goes on to say because bitcoin doesn't have smart contracts

it's basically used by centralized platforms and this is true right uh you can see it playing out like bitcoin tends to scale and do more of the i guess you could call it finance stuff on centralized parties so uh you know there are popular platforms especially all the centralized exchanges there's platforms like block fi for doing you know lending and borrowing but on ethereum you have the decentralized counterparts to that like compound and rv and things like that uh so there's there's kind of this thing going on where there's two very different approaches to building out these things whereas because bitcoin is limited and can't do you know very expressive smart contracts it it has to scale and do this finance stuff through centralized intermediaries

you know maybe in the future there will be uh you know platforms like i mean the lightning network and things like that that bring this stuff to bitcoin but still from from my knowledge it's extremely limited and and you know bitcoin's good at what it does it's fine for what it is uh you know it appeals to a certain set of people and that's all good uh whereas ethereum is like very different um i think the way i think about the two systems is that they do share a lot of the same values right they value decentralization censorship resistance uh you know disrupting incumbents within the the banking system the finance system governments and stuff like that but they diverge pretty rapidly uh when you look at the way that each

system is designed ethereans believe that a an expressive base layer like ethereum is preferred to something limited like bitcoin uh and you know bitcoin wants to do that stuff at higher layers and centralized platforms is one of those layers and they kind of embrace that whereas ethereums don't want that at all they they want to be able to decentralize everything basically and that's why d5 is so popular so i think that kind of like you know contextualizes just just how different the two communities are uh when you get into the weeds of things but at a higher level they do kind of follow the same core principles which i don't think i've seen outlayed before maybe i should write a piece on that for the deadly way in the future but

it's something i think a lot of people miss if they're outside of crypto and they're just like looking at all these things as as the same thing uh because you know from from the outside looking in they they definitely just you know you don't really know especially as a new person what the differences are and then you get into the weeds and you kind of see these these narratives forming around each system that dictates how the core communities kind of you know uh represent the system and talk about the system so always an interesting thing to see there all right a real fun tweet from dc investor here so this has got to do with price so for those of you who don't who don't really like talking about price i apologize but i wanted to talk about this because it was quite funny

so basically he says imagine having the opportunity to buy btc at 550 in 2016 before people understood it as digital gold but not doing it now imagine being able to buy eth at 550 today before people and understand it as the world's most important programmable reserve asset but not doing it now i mean obviously like the market caps are vastly different you know btc at 550 was a much much smaller market cap than it is today and it was smaller than ethereum uh you know it's market cap at 550 is around 60 billion so it's already high you know if eth was to go to the same price as btc right now say eth went to 20 000 for example that would give it a market cap of

i think two trillion which you know i mean i don't think that's out of like the i don't think that's like out of reality i don't think it's something that can't happen uh but obviously like it takes a lot more money to move these things you know the higher the market cap gets but what i really wanted to talk about outside of the price here was basically that i think at this point you know bitcoins won this kind of digital gold narrative and it's found kind of product market fit there with a bunch of people you know it is a belief system so whether you believe in it or not enough people seem to believe in it to keep buying it price keeps going up all that good stuff i think you know the same applies to eth in that it doesn't have like a narrative of

being digital gold but it is a store of value still i i you know it's being used as a story of value people are accumulating it to hold it for longer periods of time you know i mean myself i've held you know my first eighth and haven't sold any since i first bought it in early 2017 so coming up on kind of like four years now uh so and i know a lot of people like me who have held each you know even since 2016 when it was much cheaper some of them bought ether a dollar and are still holding the majority of it because they believe that there's still a lot more upside left um and they also want to you know stay in the ethereum economy and things like that so uh and then you know dc goes on to dc investor goes on to explain how

you know eth goes beyond digital gold right it goes uh it does a lot more than just like being like i guess you could call it like a pet rock as i like to call it uh he describes it as the world's most important programmable reserve asset and i mean i believe that's what it is right if you look at within d5 today and the amount of eighth being kind of used in d5 it's being used in staking as i mentioned before it's being used as a store of value you know this it's a reserve asset and it and it's completely programmable on ethereum uh and it's the most decentralized and trustless programmable as reserve asset on ethereum uh and you can as i said you can do many things with it you can stake with it you can pay fees with it you can uh obviously use it as

collateral you know there are other tokens like i guess wrapped bitcoin that you can use as collateral as well but you can't pay fees in it you can't stake on eth2 with it it's not trustless wbtc is fully centralized of course uh so there's there's key differences there and they appeal to different people so i think you know he's got a very strong narrative there but it's not as simple as like digital gold for example you know uh the the guys from banquets like to like to refer to eth as uh an internet bond and this actually came out of a guy a guy called colin myers from from consensus he he coined this term and it basically means that like you know the the the network the eth network is kind of issuing these

these bonds that you can stake and then earn more kind of eth bonds um but again most people don't know what bonds mean uh and things like that so maybe it might be better to refer to ether's like a share of the new internet or of like a new financial system um because people know what shares are of obviously uh but still i mean i was having this conversation with some friends earlier today trying to simplify eve's narrative down to what bitcoins is but you can't btc isn't is inherently simple right as i was just saying it doesn't do expressive smart contracts it's basically like a pet rock uh whereas eth does a lot more than that and the ethereum system does a lot more than that so by design it's more complex you can't just like water it down to some really

simple narrative for better or worse so i think that's why you know you have people outside of crypto hearing about bitcoin first understanding it because it's super easy to understand but then when they get into crypto and actually decide to stay in the ecosystem they tend to uh you know float towards ethereum because everything's happening on ethereum then they want to understand the eth asset because they see a theorem like okay you know there's ethereum the network and then there's ethy asset i'm gonna buy that because it gives me exposure to things uh you know some people do that some people dive deeper and try to see okay why is it gonna go up right you know why is this a good investment things like that and all that sort of stuff is a lot more complex than what what btc has in terms of a narrative

but i believe he's better right we have eip1559 coming with fee burning we have staking users trustless collateral right just paying fees in general use of store of value so all those things culminate into into a very valuable eath but it's a lot harder to explain of course unless you're in the weeds it's very hard to explain like i couldn't explain that to my mum for example who's not in the you know the ecosystem in the weeds of things uh you know whereas if i said it's digital gold right even if she doesn't believe it's digital gold she understands exactly what that means uh so yeah i think there's a lot of work there to do for ethereum and selling ethers as a kind of like this asset and this programmable reserve asset

i think in time we'll get better at it there's probably some way to sell it as a simple kind of narrative that i haven't thought of yet uh so i'm curious to see if anyone comes up with something that sticks you know there was ethy's money of course which is pretty cool but again it didn't really permeate outside of the crypto ecosystem and that's what you need whereas the digital gold thing for btc has so yeah i guess that's just a little bit of a rant on that one if you've got any you know things that you like simple ways to refer to ethan and to sell its value proposition definitely hit me up you know post it in the comments on youtube or something or or dm me on twitter or post it on twitter uh i i think we need more brains kind of thinking about this for sure

all right this is a really great thread from zubin uh from uh options platform open uh basically he uh put this this thread together that describes uh you know the options greeks so greeks just being a term for uh different options terms like delta theta vega like all these sorts of terms that you've probably heard of if you've been looking into options but you don't know exactly what they mean and he has a really great job of explaining them all here i'm definitely not going to go through them all but i did want to just highlight this thread it'll be linked in the youtube description go read it if you want to understand options better options are one of the most complex products that have come to defy so far i think especially because there's a lot of

people like me who don't have a finance background and would never touch options normally right we're not traders we're just like investing and we're interested in the technology whereas we can't you kind of want to learn this stuff right because there's lots of options platforms now that are going live that that can be investable investable and you want to understand why you also want to understand that this stuff's you know how not to get wrecked if you're playing with options which you know a lot of newer investors do because they're very uh as i said they're very complex compared to commit to usual things uh and options are typically used by the very sophisticated players so you know if you're playing against them you're probably going to lose if you don't understand what you're doing so just like to keep in mind it's a

great thread to read go check it out all right i think i spoke about connects network on the on the delivery refill before if not i've definitely spoken about it on the ether podcast but basically they posted a tweet with a share with a link to a video saying that they had done their first cross-train crush cross chain transfer on their test net ui so for those who don't know what connex is it's basically a layer two kind of solution uh but basically what they've instead of just building another two layer layer two scaling solution they're building a routing protocol for layer twos so that layer twos can talk to each other and other chains can talk to each other and not just like uh chains like ethereum talking to one of the other

blockchains but also ethereum talking to side chains you know all across like this very very um this this standard essentially and that's what connects network is trying to build uh but basically they demoed it on uh the test nets i think there was two ethereum testaments that they used and they're teasing that they're going to be uh integrating with a popular layer 2 defy application on mainnet soon so i'm looking forward to that this is this is huge and something that people aren't talking about in that this is something that needs to be solved if we're gonna have a layer two that takes off we need communications between the different layer two solutions because we can't fragment liquidity and like the money legos or else we're going to lose a lot of what's good about ethereum layer one so you know i hope uh connects is

successful here kudos to them for working on something very important i believe uh and definitely go check out the rest of their work if you haven't heard of them before they're doing a lot of good stuff all right a fresh what's new in eth2 from ben uh over the weekend as i've said before this is the best newsletter to to go check out um uh all the updates with eth2 it's at uh eth2 dot news uh it'll redirect you to the latest edition this edition was pretty cool because he went over basically the last two weeks of the beacon chain he went over all the slashings that happened on the beacon chain the the test nets update on the tooling staking services the map update from vitalik

uh basically and i mean there's some i mean i'm scrolling through you can see this on the video there's so much going on right now and he just follows it all so well he like i think i'm plugged in to ethereum this you know ben is he's more plugged in than i am especially to eth2 uh he covers like everything you need to know about e3 i don't think he misses anything like i've never seen him really miss anything which is you know exactly why i read this newsletter so go check this one out it's really cool because it gives a great recap of of the last two weeks um and you know if you're curious to see how it's been going you probably haven't heard about it too too much since it launched and that's actually a good thing because there's not much happening with the it's

just running smoothly um you know we had a few slashings which actually were were running as intended we have um more being deposited i think it's up to 1.5 million eighth now uh so we have all that stuff going on uh and it's just yeah it's running and running smoothly so really great to see that from from the eth2 launch and yeah i mean go check out ben's newsletter for more details there all right update out of loopering over the weekend so loopring's been growing really really fast i think since they launched their v2 of their protocol they went to layer 2 they're doing a lot of stuff around zk roll ups um so basically what they announced was that their tvl has crossed 30 million now and this is a high for ethereum

layer 2 solutions which is really cool so you can see the growth in the chart here of the coins that people are depositing which is really cool it seems to be mostly usdt lrc and usdc so stablecoins and i mean that's that's a given right people love to trade in stable coins um but yeah i just wanted to give a quick shout out to loopering and congrats on the growth here i think we're going to keep seeing this as as time goes on there's going to be more and more activity happening on ethereum layer 2 and i think a lot of this is definitely due to the liquidity mining program that they that they're doing but that's i think that's what you need like for things to get adoption these days you you have to compete with things that are doing liquidity mining programs and what better way to get people to use

your layout too than paying them to use it essentially so yeah kudos to loop the loopering team for leading the charge here on i guess layer 2 liquidity mining all right really cool and interesting tweet from rick burden over the weekend so he basically asked has anyone tried adapting the interface of an ethereum dap based on the connected wallets previous transactions for example someone with a hundred thousand dollars and lots of transactions in their wallet is very different from a first time user you could offer a deeper onboarding experience by doing this this is this is something that i hadn't thought about but it's extremely true right for a heavy defy user you want to basically uh skip all the maybe the intros of your app and everything and

explaining all the basics and things like that and just go straight to the midi bits because they're probably going to skip it anyway so you can offer them a better experience there you can offer them rewards based on what they're doing within defy and that's exactly what a project called rabbit hole is doing which recently raised some money and i think yeah i spoke about them last week um so they're doing that as well but there's so much you can do right we have all these data on chain that's just not being utilized like you know just look at someone's d5 history if they're like a heavy defy user then you could do a bunch of different things with them you can even market to them or advertise to them you can give them special bonuses for being a heavy defy user things like that so again i think that's

what rabbit hole is trying to do to an extent here so i'm curious to see how that project plays out so it's something i'm going to be keeping an eye on but yeah good tweet from rick got me thinking i think got a lot of people thinking it was a very popular tweet so yeah i hope it's gotten you thinking as well all right so i guess the biggest news from the weekend was a lot of these kind of nft stuff going on so there's a lot of nft sales happening right now uh as jacob here points out that uh the top 20 nft marketplaces are doing 12.8 million dollars in sales per month now uh eth is the um moe um and uoa for all of them so uh unit of account and and basically money for all

of them um the medium exchange is that's what moe stands for just came to me uh and yeah he says 12.8 million dollars of consumer sales of digital art each month all priced and purchased with eth uh probably nothing and i think a lot of this has got to do got to do with uh what's been going on with the nifty gateway sales so they basically did a collab with a very famous uh digital artist called beeple so some of you may know who he is he's got a very big instagram account over a million followers on there and he's been doing unique art pieces or design 3d design pieces every day for like 13 years so it's been quite a while since he's been doing this stuff and now he's actually selling the

as nfts you know i'm selling them as unique nfts and he's selling them at a very cheap price i think compared to what their secondary values are so i think you could buy um one of them for like a thousand dollars and then you could resell them for hundreds of thousands of dollars and you can actually see in the tweet here from nifty gateway uh that apparently someone bid 777 thousand dollars for for this collection from people which is which is insane right this is just crazy like i feel like at this point we're mixing the speculation of crypto with um with nfts and it's just gonna end up like just i mean this is gonna go crazy we already saw some of it play out over the last few months with crypto punks

which were the first nft birthed in 2017 and you know just now they're actually going for a lot the more the rarer ones are going for hundreds of thousands of dollars so pretty pretty insane growth there but yeah i just wanted to point that out because i i'm pretty sure you would have seen this all over twitter on the weekend that beeple has been has been selling these things but uh it's funny because he's actually bringing in a um excuse me he's actually bringing in a whole new cohort of people into ethereum that are going getting their first experience of ethereum through this nft stuff so completely new users will be coming in because of this because he's got such a big reach and i've said for quite a while now that i think a lot of new users are going to come

through the nft space the crypto gaming space because they're just fundamentally different users to people in like d5 and people who are in crypto and want to be in crypto for like the speculative side of it um so yeah i'm curious to see the growth numbers i haven't looked at them myself yet but definitely i think it's been exploded outside of volume also unique users and things like that i mean i just assume that that's kind of exploded upwards over the last couple months for sure all right some i wouldn't call it drama but an interesting proposal that was uh on on compound finance you can see here so what this proposal proposes is that comp should be distributed to the affected users in the recent dire

liquidations so i spoke about this when it happened there was some dire liquidations on compound due to the oracle uh showing a much higher price than than dai was at uh due to uh coinbase basically showing a much higher price than one dollar for die now this is actually uh losing uh this proposal so there's more people voting against it than for it you can see the voters here right you know the big voters like poli chain capital uh black dharma i mean if i view all here arjun kyber network so these are like they're not nobodies right like pantera capital these are these are some bodies and then they're you know voting against that 76 percent against and if you go to the four votes uh i

don't know whose address this is it doesn't it's not labeled uh but basically they've got that there you got insta dap the d5 pulse index voting through the index cop defy rate kane from synthetics monet supply i mean they're not no names either right so it's kind of like this split between these funds it seems like the funds have voted against it like polychain capital i don't know if this is a fine black uh you have uh pantera capital which is a fund uh consensus which i'm assuming is part of their fund uh paul uh is also part of uh i think he's part of pantera yeah from memory that's fund whereas if you look at the fours um there's not really any funds here right uh

i mean most of them are unlabeled addresses but it's like ecosystem projects but the against uh ecosystem projects as well like dharma and argent and kyber so it's just cool to see like i guess the the distribution here personally i i mean this might be maybe unpopular but i would vote against this proposal only because i mean i kind of agree with pantera they actually put out their kind of explanation here as to why they're voting against it but basically the tldr is is that there are risks when you use this stuff and we shouldn't be compensating users every time these risks play out basically uh so i won't read through the whole three but that was like the gist of it uh and then they kind of think that the

solutions of a more sustainable way in a more healthy way of of to kind of like reimburse people is to have like a protocol insurance fund make sure that the exploit doesn't happen by having multi-oracle designs and removal of of kind of language in the compound ui such as safe max right so because that gives people a false sense of security and i agree with them i think there are so many other things we can do rather than socializing the losses because this basic this effectively puts the losses on comp token holders because it means the comp price in theory should go down because people are expecting you know more comp to flood the market from people wanting to to sell to recoup their losses and i've never been a fan of that i've never been a fan of socializing losses like this

whereas a protocol fund that basically accrues value over time due to uh i guess um uh what was it due to like fees being paid within the compound protocol and things like that i think and liquidations and stuff i think that's that's better uh you know and on top of that compound didn't have a social contract to basically distribute comp to affected users right um and neither did maker but you might be thinking oh well maker printed more mkr tokens it's like yes because that's part of the kind of design of the system and part of the con social contract is that if the maker system becomes under collateralized more mkl be printed to re-collateralize it and that's exactly what happened

so yeah anyway it looks like these votes acted for another five and a half hours from when i'm recording this video i think by the time this video goes out it might be almost over but basically it seems like the against is gonna win so that people won't get compensated i do wonder how the comp price is doing here i haven't looked at it i assume it's it's probably flat as it waits for the outcome of this uh you know if the outcome is against maybe the the compress will go up right we just need to see what happens there i'll be keeping an eye on it but yeah uh interesting to see this from from compound and to see people voting against which i think is actually the right the right vote here for the reasons i outlined um and you know i'm glad that pantera put

put out this thread here to explain their reasoning as well i'm not just voting against for the sake of it all right last tweet from justin drake uh he posted this yesterday i think so he makes note of that 10.7 percent of validated deposits in eth2 are from kraken the centralized exchange right now um and then he notes that coinbase and bitfinex have 5.8 times more ethan kraken which means that two exchanges could control one-third of all the validators five exchanges could control half of the validators um you should stake from home to avoid exchange fees and decentralize the network out look there's no sugar coating it centralization stake centralization on exchanges has always been a worry it's always been part of the design

mechanism of ethereum proof of stake it is a less of a worry i think for ethereum proof of stake than it is for something like delegated proof of stake which is a model that a lot of the other networks kind of use um so you can see here a comment from from shil billy that says this ain't going to end up similar to eos is that with the exchanges taking over the eos block producer slots using eos uh using people's eos to vote um and then trent van epps goes on to say well eos is delegated proof of stake or depos which is very different from ethereum's proof uh pure proof of stake yes there will be large entities like exchanges staking but they don't hold a special position distinct from single 32e validators which is true right so as i said this

has been designed uh the e3 staking system has been designed with this in mind and you know the research and developers are fully aware of this but you know you should encourage people to stake on their own but at the end of the day most people are going to be defaulting to what's easiest unfortunately which will be exchange staking now i mean eth2 has also been designed to resist like majority kind of having a mistake and being able to take over the network so even if two exchanges got together to kind of you know take over the network the rest of kind of i guess the ecosystem can come together and and the system can can basically come together and if those exchanges decide to attack this the system that eath will be burned and then that's customer deposits that are

burned as well right so when you think about it the incentives are pretty pretty good here because the exchanges aren't going to risk their user funds to attack the the network right so i'm kind of like not really worried about exchanges having stake centralization i'm more kind of worried about the kind of i guess like attackers that don't care about money and will just blow as much money as they want to attack the thing and that's nation states right so if you look at it from that lens you need to make it as expensive as possible for nation states to get one third of the validators or to control one half of the validators or whatever so if they want to control one half of the validators right now they would need to acquire

750 000 kind of eth i think no i think actually more than that because they'd be adding to the existing pool so they would actually need to acquire another 1.5 million eighth on top of the 1.5 that's in there to acquire 50 of the network uh i think that's right if it sounds right to me um that's a lot of eight i think that's like 800 million dollars worth of eighth so obviously that's like a rounding error for nation states in the military budget i mean the us alone has an 800 billion military budget but if you were to try and acquire 800 million dollars worth of each like pure buy pressure right there's you're not selling any you you're just buying 800 million dollars worth of eth you're going to push the price up so that then the price of that um that eath is going to is going to

keep increasing you're going to keep having to buy more of that ether at a higher price so your total purchase price for 1.5 million each will can end up being a lot more than 800 million dollars it can be very well into the billions of dollars and on top of that as the eth price goes up right the percentage of staking rewards stays the same for example on uh on on the on on the beacon chain um and will obviously uh go down as more more easy staked but you know that you're gonna have other people wanting to come in and stake because the rewards in dollar terms are now higher so the roi is greater so you have that playing out right and you have the exchange not the exchange show the nation state trying to enter into staking which takes a long

time because your only 900 validators are allowed to enter at once so 900 validators divided by 32 is about 300 kind of eath uh sorry not 300 3000 3000 eats or something not probably more than that 30 000 i think okay sorry my mouth is is wrong there but you know that's like a small fraction of the total amount of ether they're buying and trying to stake and that's on top of everyone else trying to get in as well so you have this combination of basically all these compounding factors of they're not going to be able to require 1.5 million for 800 million dollars they're not going to be able to get into ethq staking with all that eth for quite a while they're going to push the price up by buying that much each

which is going to encourage more people to kind of buy each as well and to stake it because the roi goes higher and on top of that if it's detected by the the whole ecosystem that an attack is coming from a nation state or attack is coming from a big entity which if it's if it's someone buying 1.5 million eight to attack the network you can probably be sure that it's a nation state like it's a higher likelihood right then what ends up happening is that all that if you know say say all that it gets staking right and then the ecosystem says okay we're just gonna fork off we're gonna burn that eighth and we're gonna fork off because they're they're trying to attack the network and then that they just removed from circulation and then the nation state has to do it all again

right unlike with kind of like i guess proof of work mining where you can't burn people's asic miners or their hardware basically they can keep attacking and keep attacking and vitalik actually spoke about this in what's called his uh he calls it a a spawn camp uh attack so like uh you know you keep trying to kind of recover from this attack but because you can't burn miners hardware they just keep attacking whereas with proof of stake you can burn the stake and then they can't attack anymore uh if you google it i think vitalik bruder and proof of uh sorry spawn camp attack proof of stake something like that with those keywords in it you'll be able to find it um it's it's a pretty cool little post i think it's one of his most recent posts on his blog so you can find it there as

well but yeah i guess i ranted on for a little bit there but i guess that goes into the wider discussion about why i believe proof of stake is better than proof of work and vitality goes into it in his blog post too um there are certain trade-offs here that i won't go into and vitalik definitely goes into it in his blog post so go go check it out you know what i'm just gonna link it for you for all of you in the youtube description because i think it's it's worth you reading it so definitely go check that one out i think this episode has gone up long enough for now so yeah thank you everyone for listening that's all for today uh definitely give the video a thumbs up if you if you enjoyed it um subscribe to the youtube channel subscribe to the daily great newsletter

uh and uh go join the discord as well and i'll see you all tomorrow for another update thanks everyone