Turning Crypto into a Narrative (tl;dr)

Transcript

the lines are blurry between culture and economics arbitrarum is seeing insane volume and has made massive waves since its launch and what threat does regulation pose to the crypto industry all this and more on i'm luke and this is tldr where we catch you up on all the headlines and important narratives from around bankless this week as always there are going to be links down in the show notes so you can do a deeper dive into any of these topics before we get started i want to quickly shout out our sponsor so rear which is d5's biggest platform for collecting trading and playing fantasy soccer so if you're a top shots person or a fantasy sports person then this app is for you check it out at the link in the show notes to get started so brian quintenz came on the podcast this week

to talk about regulation from the commodity side of things uh and the takeaways here are simple we live in a heavily heavily gated financial system that is generally trending in the direction of more surveillance more oversight more red tape crypto is a response to this in many ways first it's a fundamental rejection of this top-down oversight crypto reshapes what privacy means and it also reshapes what transparency means it's also a response to the inherent inefficiencies that come along with human-powered governance systems humans are messy creatures and the more legislation in the more bureaucracy we have uh this economic game that we're all playing becomes increasingly complicated and difficult to navigate crypto leverages the power of the

internet to go in the opposite direction and brian very bluntly states that we need to let d5 run and run now and run fast uh from an economic perspective and from a national security perspective now when you have a new financial paradigm that's been you know rapidly and and wonderfully developed in you know the last two three four five years of defy you have a different approach to risk management you have a different view of of counterparty exposure you have a different view of what deserves protecting from a from a risk management perspective and whether or not you know protocols that have more open source code that can be viewed and are actually probably much more transparent than you know the changing margining process of

the legacy clearinghouses you know that's just a completely different dynamic and you know right now the law in our rule set says if you trade a futures contract it has to be done on a registered exchange and cleared through a clearinghouse well you know maybe before we start you know punitively going after you know d5 developers and and market participants that aren't complaining about anything we should think whether or not that's the right approach you know for this kind of market until now brian was a commissioner for the cftc the governing body over commodities and futures derivatives and since we recorded the podcast he's now an advisor to a16z the andreessen horowitz crypto fund and

honestly i worry that it's a bit of a loss because now more than ever we need regulators who are open-minded to innovation and to movements that can change paradigms we are at an inflection point in society and now is the time to be flexible and progressive and not rely on arbitrary or outdated rules this of course comes on the heels of the sec cracking down on uniswap and coinbase uh you can watch the weekly roll up for a deep dive into these ongoing events but my take is that this regulatory squeeze is not so great kryptos attention should be out on the frontier uh of innovation where it can garner momentum and adoption uh not behind mountains of paperwork red tape and possibly courtrooms

kathy wood has a much different and more optimistic take on all this and i'd rather you take her word over mine so watch the podcast with her chris burniske and yaseen from arkhanvest and that will be dropping this week so last week was labor day and while many were taking the day off david offered a good reminder in the market monday post that ethereum is always online 24 7. uh society never turns off so neither should our economy or our markets current markets are operational only 20 of the time this seems like an insufficient degree of uptime for i don't know the center of the economy crypto is poised to reconcile the bubbles of the economy and culture or work and leisure making them

complementary rather than segregated and a lot of that comes through layer 0 the people and in this week's episode of layer 0 justin drake came on and told the story of coining the ultrasound money meme justin is a great example of this new breed of individual on one hand he's worked on deep objective technical issues as a core developer and researcher for ethereum but now he's shifted gears to taking deep dives into the human element of all of this his work is multifaceted and flexible and emblematic of the cohesive and holistic nature of the crypto space and when you take that holistic approach and scale it from the individual to an entire group well you get a dow dao daos leverage the technology and the culture of the

internet to coordinate and when people can rally around a particular goal and have the tooling to coordinate effectively apes together strong uh the bankless and getcoin dao is teamed up to run basically what is the first consensus of the dao space and the results are fascinating so read the article uh read the full report and get an idea of what is really happening here because i think that the scale of this the dow movement is vastly underrated in other news arbitrarum launched uh we have talked about scaling endlessly and it looks like it's finally here and it's moving fast harry kaladner and steven goldfeder of arbitrum came by on state of the nation to talk about the launch and the rapid development of arbitrom's optimistic roll-up i wonder how long

it'll be and until most of these um leaderboard candidates are actually layer twos right i mean because this is what we're talking about this is the the scalability roadmap for not just arbitrary but all of ethereum you might like start your entire life as a user on a layer 2 and live there the entire time but you know settle ultimately on top of ethereum main net i'm curious what you guys think how long do you think that'll be before uh some layer two maybe armstrong starts to rise up the charts in this burn leaderboard that's a great question i i would i would say definitely before the end of the year wow in the last seven days arbitrary has

sucked in over two billion dollars worth of value and although that's not totally surprising it has been awesome to see this take off especially as we've seen other layer one smart contract platforms like solana absolutely taking off and it'll be interesting to watch how these two things compete for mindshare we've raised this question before but i think it will become increasingly clear over the next few months are other eth killers competing with mainnet ethereum or layer 2 ethereum rollups like arbitrom or optimism we'll see if gas prices have been frustrating you or you have doubts about ethereum's ability to scale well check out the guide to arbitram that we published this week in spoiler alert arbitrary is fast and it works finally our tactic this week covered wallet

management knowing your way around a crypto wallet is a fundamental skill to going bankless and it's really your portal to accessing this crazy world of defy and that's just today looking down the line your wallet can and will likely be so much more your resume your identity your token to the metaverse but step one is getting the basics down like the primitive tools of maintenance and security familiarizing yourself uh with these will surely be of help as well let's continue to increase in features and integrations so my final thought for this week is that a handful of subjects seem to come up over and over and over again and it's become clear that there are overarching themes in the crypto space that are always relevant although we talk about all

sorts of different things they all seem to boil down to discussing culture or technology or society more broadly for culture it's things like the metaverse or nfts or daos or memes for technology erp 1559 rollups proof of stake and for society more broadly it's regulation it's markets or macro big picture stuff these things are always changing but if you pay attention you can see these recurring themes and if you put them into perspective over time you can see narratives form and play out building narratives out of this constantly changing and complicated ecosystem is the best way to make sense of it and it can give you insights and experience to know what to make of the next big narrative that comes along so

as you consume crypto content or content in general i guess uh always work to find the through lines and like build a mental model for what's really going on because all of the information is out there way too much information honestly but it's only you that can get a meaning out of it so with that maybe corny final thought uh none of this was financial advice ethan's risky d5 is risky but we're headed west it's the frontier it's not for everyone but we are glad you are with us on the bangladesh journey and i want to quickly shout out our sponsors gemiini ave balancer and uniswap it's cool that our sponsors play big roles in these recurring themes and we're happy to sponsor them so thanks a lot and i'll see you next time hey we hope you enjoyed the video if you did head over

to bankless hq right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence we recommend joining our daily newsletter podcast and community as a bankless premium subscriber to get the most out of your bankless experience you'll get access to our market analysis our alpha leaks and exclusive content and even the bankless token for airdrops raffles and unlocks if you're interested in crypto the bankless community is where you want to be click the link in the description to become a bankless premium subscriber today also don't forget to subscribe to the channel for in-depth interviews with industry leaders ask me anythings and weekly rollups where we summarize the week in crypto and other fantastic

content thanks everyone for watching and being on the journey as we build out the bankless nation