OpenSea growth, Metaverse Millionaires and more - The Daily Gwei Refuel #188 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the delegate refuel where recap the latest news in ethereum ecosystem i'm your host anthony sosano and today's the 17th of august 2021 all right everyone let's get into it so i wrote about this in my newsletter today but this uh this funny meme coming from kiwi.edu he uh he he's pretty active in the ethereum ecosystem works at prior labs as an engineer and works on a bunch of other different things as you can see in his bio there but he put out this really funny meme where it's basically for those listening it's a picture of a room with just like a pc in like the corner and a picture of like a an nft on uh i guess like on the wall as a painting and and then the whole rest of the room is like empty there's no

furniture there's no chairs or anything else like that and it's funny because i wrote about this in the newsletter but i think this perfectly encapsulates what i guess like the crypto ecosystem is and what kind of like the type of people in it and kind of i guess what the the culture is because at the end of the day uh and i titled the newsletter metaverse millionaires at the end of the day there's been a lot of people over i guess like the last 12 years uh especially younger people who have basically bought btc or eth early on or on any number of other things over the over time like d5 and all that sort of stuff they've bought that early on and then they've made a lot of money on it and become these kind of like metaverse millionaires as i like to call them

where they're not really too concerned about the physical world you know owning things in the physical world or kind of like showing off their wealth in the physical world because everything's pretty much digital when it comes to crypto right so instead of i guess like flexing their wealth or kind of like buying uh physical status symbols they're buying digital ones you know there's the crypto punks of the world uh you know depending on kind of like the level of wealth you have is what crypto punk you can afford whether you have like a zombie or an ape or an alien even or just like a floor punk or whatever things like that um and you know a crypto plank or an nft is not the only kind of like way way to kind of like show that wealth you can be like a whale um you know in one of the protocols

where you own a lot of the token and you can kind of like swing votes and stuff like that there's a lot of different ways you can kind of like flex but it's not just the flexing aspect to it it's the fact that young people want to feel like they own a piece of something right in the day they want to feel like their own uh you know a piece of like a world and at the end of the day the old world is just unattainable for a lot of a lot of these people and it's uninteresting too like uh you know property especially for a lot of younger people is out of their reach right uh it's just ridiculous how much you have to kind of like spend on kind of maybe you know property closer to the city and things like that uh especially but

because you know if you're into crypto and you're like part of the ecosystem you work with in crypto it's basically all online so your physical location is really not not of concern so you'll typically see a lot of people with encrypted move around a lot you know they'll just leave out of a laptop i mean vitalik himself lives out of a laptop or they may have a property you know somewhere in a rural area or on a you know on a farm or whatever or something like that or out in like the bush as we like to call in in australia rather than anywhere kind of close to the city because they don't need to be there right um but there are definitely a lot of crypto nomads and stuff like that so because they don't have much of a physical presence but uh they they kind

of like make up for that by having a big digital presence and that's what i mean by like metaverse millionaires where and that's what this picture kind of like shows is that you can have all of this wealth right um millions and millions of dollars or whatever but you know it's all represented within the digital space rather than the physical space and of course you can blend the two like you can display your nfts physically in the real world you know as i do behind me or you can have like a bunch of other stuff like you know figurines and stuff around you or whatever um uh but at the end of the day like i think the majority of the people aren't aren't like that they really just you know i guess like travel light live lightly uh and then definitely uh it's trending more towards kind of like

things being digital because of the fact that if you want to travel around if you want to be a you know a nomad if you want to kind of like be able to to kind of work out of anywhere sort of thing then you really do need to have just the digital presence and and the physical presence just becomes cumbersome for you and just becomes something that is a liability at the end of the day you know for example for me to move my digital life around is like super super easy right i just have to uh have my my hardware wallets on me or whatever or or my my phone or what my laptop whatever but for me to move my physical kind of like location is extremely hard i have to move all the stuff that i have unless i want to leave it in storage

but i still have to have somewhere physically to put it like all my figurines and all my books and everything and all that sort of stuff um whereas you know digital is just much easier to move and i think it's funny because like when you think about like the the generational shift there as well where typically uh as i mentioned like properties out of reach for a lot of young people but it's not just property it's a lot of other things uh most of the wealth as you know the old world wealth is is part of like uh the the older generation right they grew up with it they invested in it early on they got exposure to it and as it kind of went through they are now like kind of like the gatekeepers of these massive institutions and these massive kind of like

uh companies and things like that where they they own a lot of the wealth there whereas in the new world they're actually the late adopters right the early adopters are the young people and you know if we can't own the old world well we'll own the new world it's as simple as that so there is definitely that wealth transfer effect going on as well where by the time you know the the kind of like um the older generations or at least these institutions start buying into these assets they're already worth hundreds of billions of dollars like institutions didn't even look at btc or eth until they were worth hundreds of billions of dollars um or you know i think definitely for bitcoin it was about that um they weren't even purchasing it i don't even think sailor michael saylor purchased uh his first bitcoin until it

was worth uh you know i think it was 200 billion or something like that something crazy uh so if you kind of look at that uh and kind of like see how the arc of adoption happens if you're young um and and you know you're i guess like got more more freedom maybe you don't have kids and things like that uh and you have like you know more of a risk appetite too because of the fact that it's just you or maybe you have a partner or whatever you don't have like massive mortgages or bills or whatever you put your money into crypto and you take a bigger risk but the reward is a massive payoff and i think a lot of young people have done that over the years so yeah i just thought that this meme that kiwi put out there just perfectly encapsulated that generational

shift that we're seeing and on top of that another aspect that i don't think is talked about enough is the fact that because this is all digital you don't have to take your real life persona or your real life identity to the to the digital world you can be whoever you want to be uh obviously it's a bit too late for me to do that i mean i could make an alt account on twitter and basically posts as an and as an anon as they're called but at this point i'm like my who i am and my reputation and everything is it tied directly to my real life identity and i i don't mind that that's that's kind of like how i played it but there are a ton of anonymous and pseudonymous accounts on twitter like all the animal accounts you know all those uh sorts of things

like that we all know and love uh you know and they're unknown to most people and you know they're they're on the cover of fortune magazine as i showed the other day people please uh kind of made some art and put them on the cover of fortune magazine magazine which also encapsulated that kind of like shift or uh from kind of like old money to to new money and kind of like how the the shift is happening on both a generational but like i guess like an identity identity level as well which i thought was really interesting so yeah just just a bit of color of how i'm thinking about these sorts of things and i'm sure there's you know a lot of you watching that maybe you don't have a big social presence or maybe you do and you're one of the anons or whatever um but generally i think

we're just going to see that trend continue where more and more people are going to just uh shed their old world identity and their identity might be tied to one of their nfts like i know there's plenty of um you know accounts on twitter that have a decent following that are tied to their crypto punks like no one knows who they are but their punk is their avatar and you know that that's kind of like their identity and obviously there's people that are known that change their prefer pictures to punks but that's definitely a different thing there so very interesting shift happening uh you know in the world right now that i think a lot of people just don't realize is happening and by the time they do it will have taken over society it's kind of like what happened with the internet by the time most people clued

into what was happening it had already kind of been embedded into everything that people were doing um and and kind of like taking over a lot of people were like oh my god what's this internet thing now then i have to learn it and you you know typically have that that general like adoption cycle curve which i think a lot of you will have seen uh already like you can google that adoption cycle um kind of like curve and you can kind of like see it goes to the the late majority and by the time the late majority is in i mean pretty much like all of the growth is is already kind of like happened right by the time the late majority comes it's it's you know the persp the um the tendency for that thing or that technology to go like 100 x or a thousand x growth is is very

very low and you you know you saw this play out with like the smartphone boom for example i think it's the perfect example because i actually saw this um play out in my own family and when i was working at a telecommunications company essentially you have all the early adopters right and they all get into to technology and use smartphones and you know build all the apps and everything like that and then 10 years later i started seeing uh maybe the older generations who hadn't grown up with technology start adopting smartphones and start uh 10 10 years later being from like 2007 2017 and started getting into it but by the time they had adopted it um smartphones were already absolutely massive and was everywhere we were on like iphone what seven or eight at that point or something like that so you don't wanna

be in that cohort you wanna be as early as possible and i think that's where all of us are today within crypto and on that note as well i mean i put out another tweet here where i basically said i believe crypto is the most disruptive force since the internet and probably even more disruptive i actually think it's more disruptive because uh the internet was i guess the internet was a social and technological revolution but crypto is social technological and monetary and i think the monetary revolution is kind of like i guess probably the the the base of it like that is where everything is kind of built on and then you have the technology aspect and the social aspect and the culture i mean there's so many different things that crypto kind of touches here that i actually think it's much more disruptive

than the internet um but on that note mass adoption hasn't even come close to happening yet and it won't happen until crypto is embedded into everyone's lives in a seamless and ubiquitous way so in the end just long adoption and long everything really i mean at the end of the day if you look at kind of how the markets play out as well like if you had bought like pretty much any of the the things within crypto even if you you know maybe they even were a scam or whatever the market is just in such a a canberran explosion of both innovation and growth that these kind of things do just kind of like tend to go up all together like a rising tide lips or boats sort of thing that's not to say that a lot of this stuff is something that you should buy or you should invest

in for the long term we shouldn't even invest in it all uh but generally like longing everything i mean in in in this kind of like phase that we're in is is not a bad idea but like obviously for me i have long eighth and you know within the ethereum ecosystem whatever i find valuable there but generally i guess like longing isn't just got to do with investing either uh if you want to long this ecosystem from like a non-monetary standpoint you invest yourself into it right you invest your own time into it invest your your uh i guess like skills and knowledge and all that sort of stuff because at the end of the day you can essentially kind of like jump into this ecosystem get a job i think relatively easily i don't think it's actually too hard you just have to have the the um kind of like

motivation consistency um you know a little bit of like a prior knowledge but like you can learn a lot of it on the job uh and definitely you want to be passionate about it too and kind of like change your life like that which i which i think is a very kind of like i guess unique thing with crypto in that you can be anywhere in the world and work for any other company like pretty much every company or dao is is fine working with remote people i find working asynchronously like in different time zones and things like that there's really no issue there so from that perspective i think that we really mass adoption hasn't even started yet uh on on kind of like every kind of like angle i know that we're seeing crazy numbers flowing flying around but it's just nothing because i was i was

kind of like talking in the discord channel today about this where i basically said i think you know just as a rough estimation if you were to actually look at how embedded defy is with the rest of the financial ecosystem it's like 0.1 percent probably of of like the the dominance of the rest of the financial ecosystem because um crypto is not used for everyday payments at all and payments is is the backbone of the entire world's economy right like payment is the most basic thing you do crypto's not embedded into that at all none of the major banks are embedded into crypto yes they may have accounts for people uh but that's holding fear they're not like tapping into d5 protocols or anything like that or kind of like i think acting as front ends i mean i could go on about the list here

but there's just basically none of that and if we've achieved what you know the numbers that we have and the growth that we have and you know running into all these scaling issues with just 0.1 of the kind of like market share of of finance when i believe d5 is going to be 100 of that in maybe you know maybe it takes a little while 10 20 years to be 100 but i do believe it's going to be a large portion of it and eventually tradify just going to be completely phased out well then it's very easy to say that we're just like stupidly early and mass adoption isn't even close to happening yet and it technically can't happen too because of the fact that we still have a lot of growing pains not just on the scale side of things but also on the ux and making it seamless for people

to kind of like interact with this sort of stuff at the end of the day you know if you want this to be an actual payments network you would need someone like visa to basically change over their entire payments network to something like a layer two on a theorem just just as an example there because that's the quickest way to bootstrap this whole thing um and of course you know that would be centralized but that would be kind of like a bridge and and then and then obviously over time we would want to kind of like get that payments infrastructure done in a decentralized way but there's you know there's definitely like kind of like hybrid approaches here to getting adoption and at the end of the day most people you know it's funny because most people on the surface may not care about decentralization until they need it so i

think that the the kind of like decentralized world that we all envision and we all want to happen will just take longer to play out but we're going to have this kind of like hybrid phase where there's going to be tons and tons of centralized companies institutions uh you know entities whatever you want to call them tapping into our kind of like d5 rails or decentralized rails uh on ethereum on layer twos on side chains you know anywhere uh and it's funny because like sometimes i get called like an ethereum maximalist and all this sort of stuff because i just focus on ethereum but i really do believe that the total addressable market for for smart contracts and for this technology is so you know immense like it's it's it's insanely big right it doesn't just cover finance it covers so many other areas that you know while i believe ethereum

is going to retain most of the market share uh is going to be like the biggest player it's going to have like obviously the most decentralization and security these kind of like other chains that feed into it you know through bridging or whatever um it's not going to be bearish if they get adoption for ethereum because it's just it's too big like the ecosystem is just too big it's growing too rapidly it's still got another like you know i mean just rough numbers i would say like the ecosystem in general still has many many thousands of times more uh kind of like growth left in it that's not to say that it's gonna go a thousand x right like from here or whatever like that would you know that would put it at a really high value i think that's three million dollars or something like that

um maybe one day but but um that's not to say that that's gonna happen anytime soon or whatever but that's to say that the adoption in terms of like how many people we're servicing is gonna explode because if you think about it even if there's only one million people that are actually using this technology i'm not talking about people who bought crypto on an exchange because there's more than one million people who did that i'm talking about one million unique people who have actually used defy and used it actively like say a monthly active user do we have a million today let's just say we do well a thousand x from there is a billion which covers most of the you know a a big chunk of the developed world right but a lot of this stuff is being built for the developing world too

so in the human popul population is almost 8 billion you see where i'm going with this right and it's not just like a human adoption standpoint either it's kind of like a capital adoption standpoint liquidity as well um and all that sorts of stuff there so yeah just i guess strap in because like we haven't seen anything yet we really haven't and people just i think are really underestimating how crazy this ecosystem is going to get over the coming years and you really are on the ground floor still i believe and you really do have an opportunity to to still kind of like you know ride this wave up in a big way uh as long as like my number one rule in this ecosystem is as long as you don't blow yourself up whether that be by leverage trading or you know trading

away your stack or losing your stock to like a hack or basically um you know losing your kind of like you know access to your hydra wallet or your seed phrase whatever as long as you just don't blow yourself up you are going to do absolutely fine in this ecosystem so yeah just that's that's that's my only real kind of like overarching advice um when it comes to kind of i guess like the monetary side of things in crypto is that i've seen many people blow themselves up and it just wasn't worth it for the risk they were taking because you know maybe they increased their eat stack by like 20 if it paid off but the the um the kind of like i guess drawback is 100 loss or something like that or like 50 loss so you always have to kind of weigh

up those pros and cons and make sure that you're not getting yourself to position where you're going to blow yourself up but yeah on that note i'm going to move on to the next thing here so i saw this post today from a twitter account called zero knowledge validator and they've introduced this zk open legal working group which is 11 projects working in collaboration to create legal clarity around the use of zero knowledge proofs to unleash their full potential for privacy and scaling applications now there's a bunch of kind of like familiar names here hermes diversify uh aztec gnosis figment and they seem to be forming this kind of like legal group to make sure that zero knowledge technology is not uh regulated to you know heavily and

i guess kind of like regulated to a point where it becomes unfeasible and i think we need more of these kind of working groups given the regulatory kind of landscape that we're seeing play out right now especially within the d5 landscape and obviously with the infrastructure bill and all that sorts of stuff you know it it really is kind of like something that we need more focus on or many people more people working on so i'm great to see the kind of this group form here but if you want to learn more about this i'll link the the medium process they put out in their uh in the youtube description um but yeah i mean i i just think this is a really big positive for uh for the ecosystem and you know it came out of nowhere but i'm glad to see it happening

so dude analytics tweeted out a picture today of open seas growth and they were quote tweeting uh alex al atala i think that's how you say his last name here um who is the co-founder and cto of openc where he said openc has now passed etsy in volume with one billion dollars so far in august nfts are rapidly catching up to all of ebay obviously this growth has been insane i do think that this is like an apples to apples is not an apples to apples comparison because etsy is like mostly pretty much actually i would say like pretty much all of etsy's goods are physical goods right whereas open c is all digital and it's much easier to move digital goods and obviously with crypto everything's on steroids and everything so i don't i wouldn't say it's an apples

to apples comparison but it's still wild to see like the volumes that these kind of platforms are doing and this is like just in august right i mean going back to the tweet here from doing analytics this chart you can see that open seas growth has just been absolutely insane i mean they have been the main beneficiary of the nft boom now you know there's speculation that openc might do a token but there's other speculation that openc might be going public as well and maybe that's why they're kind of tweeting this out because etsy is actually a public company they have a market cap of 24 billion dollars so if uh open c is doing more volume than etsy well then logically if openc were to go public instead of issuing a token they should be worth 24 billion as well which is a very very nice payday for all of the

investors or the early investors in openc am really upset that i didn't get a chance to invest in opencl of course and i'm sure we all are but i i don't know i hope they don't go the public route here i hope they go kind of like the token route because i believe that uh crypto projects should def should issue tokens and you know even if you believe that open c doesn't need to be decentralized it doesn't need a token or a dow whatever i do believe tokens can still act like traditional kind of like equities or stocks or whatever you want to call them and kind of give like holders you know dividends or cash flow rights or whatever and you know it can be still registered as a security or whatever you want to call it um that's fine but it's just like issued as a token on ethereum

or something i think that is more in the crypto spirit and i i think that with a token you also have the option of uh kind of like air dropping as well right like you airdrop a token to all of the past users of open c now if they don't do a token and they go public i actually think that's going to cause a little bit of heat because there'll be a lot of early users who say you know where's you know my airdrop basically like where's my share of everything like i and it goes against the crypto spirit of rewarding the creators and kind of like the contributors rather than rewarding a centralized company but i'll have to see how that plays out i still think it's interesting just to see like how much the openc has grown in just like a few short months yeah it's just

been insane but you know is this the nft top like is there going to be a mini bear market who knows like i at this point in crypto i'm done calling thompson anything because as i've said multiple times i think we're in an in an adoption super cycle so it's going to be very hard to call the top on anything right now and that's why i said long adoption long everything because in an adoption super super cycle everything's just going up because you have like so much innovation happening so much experimentation you have so much people coming in they don't know what's going to win so everyone's just betting on everything it's going to be a crazy time that's for sure so taylor zhang uh who who uh uh kind of like put out this tweet today about uh mask book which or mask network which i

basically covered in yesterday's daily grain newsletter about the web 3 features that they're bringing to web 2 such as basically and i spoke about this on the refill how you could em with the the mask network kind of extension you could embed like a decentralized exchange widget into your tweet and then into twitter sorry and then be able to to trade um your assets directly from twitter uh but he's you know he basically quote uh quote tweeted the tweet that i was referencing in my newsletter from chop chop here saying that um you know mask a network already has everything that chop chop listed for discord uh but on twitter instead um and then taylor went on to kind of explain how and why they've got that um you know and he mentions that i said in my newsletter that mask book has the trading widget for uni swap but

it was but that was over 10 months ago and they've already upgraded to a multi-chain multi-deck solution integrates all these other kind of ones here and then he goes on to say other than the trading plug-in they've integrated uh d5 like pull together um and auger and d hedge and stuff like that uh and then non-default applications they've also integrated open c and wearable and r weave and and there's so many integrations happening here i didn't know how you know that they had done all of this i haven't used it in in a little while um as i said i'm kind of like i guess um the review yesterday if you're a power user like me and you have like six monitors in front of you um you know this sort of stuff probably won't appeal to you as much but i think this sort of

stuff is definitely appealing for people who maybe live out of a laptop or on the go and more kind of like mobile than i am i mean very hard for me to be mobile right now considering i mean lockdown but i think you know it's definitely very appealing for that and for those people who don't want to have like a million tab browser tabs everywhere i mean i think i have like 200 tabs open right now it's not healthy but yeah i mean i i really like the fact that taylor put together this thread you can go check this out and read the whole one it'll be linked in the youtube description but it really shows that a lot of these things are already out there and and already kind of like um readily integrated and you we're just gonna have to see the adoption here and

like i didn't even know that they had come this far which i think is just really really cool to see so hazu on twitter uh put out this interesting kind of tweet today where it's funny he's like uh it's always risky when you put something out about bitcoin and bitcoin's monetary policy but essentially what hazu said was that since people are once again telling me me being hazu that btc fees have only ever gone up over time here is an update on the data security budget equals market cap uh divided by minor revenue doesn't matter if you denominate in dollars or btc as long as you're consistent and as you can see here as the block subsidy has dropped over time the transaction fees has also dropped over time so the

transaction fees uh are not making up for the loss in kind of like uh the block subsidy budget like the security budget that you get from the block subsidy um you know because obviously every four years the block subsidy hubs and then you know obviously the security uh budget goes goes down because of that so the transaction fees aren't making up for it and you can see here as well that the security budget just including fees annualized and this shows a perfect example of it has not really increased i mean it it basically peaked in you know end of 2017 early 2018 the last bull market and since then it's it's remained quite steady and this is simply because there's not much to do on the bitcoin network right you just send btc to one another and i said a long time ago like years ago i think i said this in

2018 to to some people that uh because of the fact that there's just like not much to do on bitcoin it makes zero sense to me that bitcoin would have high on chain fees at the end of the day because the demand to transact on bitcoin is just so low like the only thing you do um on bitcoin is you send bitcoin to and from an exchange like arbitrages do this but they're commonly using kind of like um either layer 2 solutions or solutions that are sitting on top that kind of i guess act as like a kind of like a side chain but like something centralized where you can send btc from one exchange to the other or you know maybe they're using lightning network i don't know but generally um i think that over time the kind of like revenue from transaction fees on the

bitcoin network is just going to keep trending down and that's not going to make up for the blog subsidy so over the next kind of like i guess decade in the next two bitcoin happenings bitcoin is actually going security budget is actually going to fall so low that it's going to become very easy to attack the network uh because of the fact that unless the i guess like the price of eighth uh has kind of uh sorry price of eight price of btc has gone up a lot uh it just becomes very very hard to kind of like uh you know justify the sorry kind of like argue that bitcoin is going to be secure so this is obviously something that uh the bitcoin maximums don't want to discuss it's sacrilege to discuss because the only way to fix this i guess there's multiple ways to fix

this but the easiest way to fix this is to essentially get rid of the 21 million limit and keep issuing bitcoin in perpetuity um kind of like what ethereum is doing by issuing ether perpetuity but we also have the fee burn to kind of make a deflationary which i'm going to talk about in a sec actually or you go to proof of stake which is much uh takes much less capital uh is much less capital intensive to secure and um you get more bang for your buck out of proof of stake now those two things are not something that i foresee bitcoin integrating any time soon if ever they hate proof of stake the at least the bitcoin maximalists do and they love the 21 million supply limit and they love that that they think it can't change of course it can change but they don't want it to change

so this is like a rock and a hard place i think for bitcoin and it's going to be a very interesting decade for it but i just wanted to kind of like point this out here because hazu i think is one of the only really objective people in this ecosystem he definitely has kind of like some subjective opinions but he tends to say pretty objective like he's he's an ethereal and he's a bitcoiner he um points out the faults in both commonly so i really do take his opinion seriously whenever he brings up something but yeah i mean this is something that i've been talking about for quite a while as well and i'm glad there's more attention being put on this um you know i'm not just trying to fight bitcoin or whatever but this is one of my long-term concerns with it for sure

and i don't think it's concerned trolling to say i can yeah concerned trolling to say that uh its security budget is going down over time because you can literally see it in the data so speaking of that deflationary ether that i was talking about its monetary policy there's a few new features on ultrasound.money which has become as i've said my favorite website for watching eath burn here uh but essentially they now have a macro burn indicator in each per year so they're basically annualized eighth being burned a year which is currently at about 1.7 million they have uh the second feature here macro supply growth in percent per year so what's the net supply growth yeah so it's 3.1 percent extra like um you know taking away the the amount of heat that's going to be burned per year then what's the issuance well the net

issuance is five point three million new uh new eighth per year and you can actually toggle to simulate the merge so if you toggle this right now in a proof of stake world we would be deflationary there would be a negative 1.1 percent of each issued per year and that would mean there's only 0.4 million a new million uh sorry 400 000 new eth issued per year but 1.7 million is being burned this is why the you know the merge is so bullish right this is why uh everyone's like saying oh i'm saying especially the merge is like much more bullish than one five five nine is because of the fact that we are deflationary today at these kind of like a gas price and and by a lot like that's that's a lot right um and then you can kind of like obviously

toggle it back here and see that with proof of work we're paying a lot for security which i i just you know it's too much and if i had it my way i would love to see another block reduction within ethereum where we actually um halve the block reward from 2 8 per block to 1 8 per block that would have probably put us still at uh you know i guess you could say 1.5 1.55 percent uh per year but i guess like it would it would it would have made up for the fact that we've just been overpaying minors but anyway good to see these new features integrated on ultrasound.money here and then the last thing to talk about is this tweet from stani who said well-designed web 3 protocols does not solve every single thing instead leaves room for the community to invent and

build the rest of the features this is so when you can kind of look at this and relate it back to the two newsletter pieces i've done on friday and monday around decentralized social media and web3 stuff and all that sort of stuff this is exactly what i was talking about where and it doesn't apply to that it also applies to things like d5 i still count defund like the web 3 umbrella but essentially you do like this kind of you deploy these smart contracts to the chain um you know unisop is the perfect example here and then you basically give tools to developers to build on top of it and they can build on top of it without fear of getting shut down because it's decentralized if if if some of you have followed the web 2 world there used to be a lot of

open apis early on in facebook's live and twitter's live and whatever and people could build whatever they wanted on there but then facebook said well well well we're leaking way too much value here by letting developers build whatever they want on here and and let's just shut the shut this off and they kicked a lot of developers and their apps off the platform by doing so a lot of you may remember a lot of the early facebook games i remember things like farmville they were built on there but there was massive platform risk and what ended up happening was that facebook just basically killed it off they're like no no no more open kind of like building here they still have an api and stuff like that but it's incredibly restricted and they wanted to keep everything in-house where whereas crypto is the exact opposite of that where uni

swap is deployed to an open protocol it's completely decentralized um and anyone can build on it and there is you know there's nothing that unisop can do to stop people from building on it and for deploying whatever they want to it like you can deploy any kind of token you want or whatever you can build whatever interface you want on it and that is the kind of like web 3 crypto ethereum d5 kind of ethos and that's kind of like i think what's going to happen with decentralized social media as well is that if it does kind of become a thing the contracts or at least the underlying i guess like foundations of it need to be open and then there can't be like an admin key or a central point of failure that can essentially kick people off the platform and keep people off from building on them or for

developers from building on it so yeah interesting thing to think about from starting here but i think that is it for today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone