Ultra sound money, Connext Amarok now live and more - The Daily Gwei Refuel #535 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the other way refuel where we cut the latest news in ethereum ecosystem I'm your host and the designer it has the third of February 2023. all right everyone let's get into it so another all core dev's call has been wrapped up here and Tim baiko has his thread out as usual and I'll of course link this in the YouTube description below so what they covered including the steps to the chappella test Nets now chappella is the mixture of the Shanghai and um and capella code names given to both of the execution and consensus layers I just refer to the upgrade as Shanghai but technically it's Chapala so if you hear people saying chappella that's what it's referencing it's the same thing it's it's just the different layers both the execution layer and

consensus layer have the different upgrade names um I believe the execution layer is Capella and the consensus layer is Shanghai I might be getting those mixed up though but yeah that's how it works and that's combined makes chappella so just in case you didn't know that uh there's there were lots of discussions around 48 44 specs and the path to sszing the execution layer so you can read the thread for a full breakdown here on this I did want to highlight one thing I made a mistake I believe yesterday when I said that the jejang testnet had already run through the Chapala transition it had not so what happened with the judging test net is it was just spun up as a normal I guess current ethereum main net uh sorry current Uh current version of what we have on the ethereum mainnet and it

hasn't gone through the chappella or Shanghai transition yet that will be happening on Tuesday at 3 P.M UTC so yeah I mean as I said like the network itself will spun up correctly uh it's all well and good I believe there were only a few config issues with launching the network uh but uh that was being looked into at time of Tim's thread but generally everything seems okay here uh and on top of that uh as I said the actual transition uh the Shanghai transition or the Chappelle transition will be happening on Tuesday at 3 P.M at UTC now obviously the other exciting thing of this call devs call was more discussions around 4844 uh and specs so the thing is once a spec is kind of locked down then the client teams can

start building this out and then we can start going through the whole process of getting it onto mainnet but until obviously a spec is is built out and Frozen so to speak that can't really happen I mean it can happen in the sense of there can be devnets there can be things built in preparation for the spec being finalized but in terms of getting the uh I guess long-lived longer live test now Dental public test Nets up and running that definitely requires uh I guess like a spec that's either Frozen or potentially as close to Frozen as as possible there so you can read the thread for more information on that and then the last thing was ssang of the excuse execution layer which is a big topic so uh this is quite technical so SSD I mean there's a post here that's linked uh in this thread from vitalik

which um which is uh ISO seven days ago it's quite new uh propose Trends and transaction SSD refactoring for Cancun now Cancun is the codename for the upgrade that is going to be I believe coming uh with erp44 uh aerp 4844 as part of the next upgrade after Shanghai you can give this little document a read here and you can also check out as I said Tim baiko's thread for more information about all of this but anyway I'll leave that thread for you guys to check out going to move on to the next thing now which is a tweet from ultrasound money that I came across just before so they've got a picture of the ultrasound barrier graph that's on their website where they basically show the current ultrasound barrier aka the uh the gas

fees or the gray number that needs to be met before we go deflationary so currently at 16.6 K and then it shows it's showing kind of uh what this has looked like from Genesis basically or not not Genesis from when erp1559 went live basically as a 546 days ago and you can see we spent most of our life in ultrasound territory as a network obviously uh in 2021 there were a lot higher and a lot more eth was being burned uh towards the end of 2021 I should say after 1559 went live there and we've only spent a little bit of time under it now the reason why I'll just the ultrasound money account has posted this graph is because they said a few things here they said the ethereum daily burn is uncapped now people don't

maybe seem to realize this but what we mean here is that essentially any amount of eighth can be burned each day it just obviously depends on the transaction fees now I mean in theory it's uncapped in practice the cap is basically what people are willing to pay for transactions so I mean it can it can obviously run into the hundreds of millions of dollars of daily fees it could potentially one day be billions of dollars I mean that's thinking real I mean I and that's kind of crazy because I would expect that to be spikes in demand not necessarily sustainable Demand right now it's about I believe five million dollars a day and at the peak of the bull market it was pretty it was averaging like you know 50 plus million dollars a day so it was pretty

wild right uh but obviously as we know the bull market doesn't last forever doesn't actually last that long to be honest the the that period of the bull market where everything's going crazy but yeah in in theory the daily burn is uncapped there is no kind of mechanism on the network which basically says okay well we're going to cap the gray price at 100 and then uh no one can bid more than that that's not how it works great can go as high as it needs to go to service the network and then the second Point here is that in in contrast to the burn being uncapped daily issuance is capped so this is I guess 99 accurate with one percent Nuance so the reason why I said it's 99 accurate is because it's technically capped at I guess each

yeah so it's kind of hard to describe this without getting too technical but it's capped per slot I should say but the thing is is that every so often new validators will join the network which means issuance goes up which means that uh daily issuance is not capped I mean in theory it is like capped if all eat is staked and no more eat can be staked but then we create more eighth which could be staked even though we have the burn and then it wouldn't net out to exactly zero so that's why I'm saying it's like 99 correct with one percent Nuance here um but for all intents and purposes it is I mean the the amount of eat being issued each day won't increase or decrease I guess post withdrawals that much based on the validators joining and not joining but over longer per periods

of time it will but it's much much less obviously and and I guess like much more close to closer to being capped than something like the burn and then the third Point here is that ethereum is sustainable in a bear market and I've talked about this a lot on the refuel already so I'm not going to rehash my points here but I mean we are above the ultrasound barrier in a bear Market still uh and even in points of last year when when the market was even quieter we were and and as I've said before the top burners on ethereum are to get us above the ultrasound barrier are all the apps that aren't ponzis or kind of like flashing the pan apps or nft mints or anything like that they're actually sustainable things uh and you can actually go to the ultrasound money website and check that out for yourself

which I'll show in a second actually I just want to go through the the fourth Point here and that is ethereum is ultra profitable in a bull market so the funny thing is is that the merge came in September of 2022 um pretty much like nine months after the bull market had ended in one of the quietest periods or pretty much almost the most quiet period I would say uh of crypto over the last few years so what happens when the bull market comes back like it did in 2021 and what happens to the burn then like what happens to the amount of eth that's in circulation like are we going how net deflationary are we going to get it's going to be quite wild because for most of the Burn's life it

was actually under proof of work still the burn went live August 2021 uh and then there was 13 months of burn in a proof of work world where as we know a proof of work ethereum issued a lot more Ethan than proof of stake ethereum does and and that was that was the bull market there so let's see what it looks like when the bull market returns it's going to be very very crazy I reckon we're going to get to like net hundreds of thousands of uh of negative e uh sorry uh deflationary eighth and then potentially Millions uh so basically so let's just say it's a million net deflationary eth uh basically it means we've burned uh a million more than we've then we issued in the time period that you kind of look at that right so looking at the ultrasound money website

we can actually see that we're currently in deflationary territory since the merge and I've discussed before how it you can take whatever time frame you want and paint whatever you narrative if you want I think it really only makes sense to take two two time frames in terms of the longer term time frame so since merge and since uh Erp 1559 went live I'm more partial to since 1559 went live but some people prefer since merge more and some people prefer just looking at I guess like a 12 month period or a six month period but to me I like to look at since 1559 went live even though it was under proof of work ethereum it still makes a lot of sense to me to look at it like that so if we do that if we do send at all time here so I scroll

down here if I click all time you can see uh well it won't show it here because this is only tracking the merge but you can see the old time uh kind of uh where is it down here the old time burn so we've burned 2.87 million eighth over 547 days so that's since 1559 went live and we've offset issuance pretty massively by doing that and then you can also see that even over that longer period of time most of the apps here that have been burning eat other sustainable ones eth transfers openc uni swap tether the only thing that was I guess like a big flash in the pan was the other deed or the other side nft mint as part of the board ape Club ecosystem and that burned 56 000 each but that was like very short-lived right

so if we go the last 30 days you're gonna see all of the same apps here um but you won't see other Deeds so yeah you can see yeah that pretty much all the same apps show up right open c e transfers unusoft tether and a few newer ones as well like like blur uh there is Zen torrent as well which I don't know if it's a punch onesie or anything like that but that's showing up still too but again this is only over the last 30 days it's not like six months or or 12 months or anything like that which I'd love the ultrasound money website to actually add here um but yeah anyway I'm not going to go through the whole website again because I've gone through it plenty of times for you guys um but uh just before I finish up the

discussion here I wanted to give a quick reminder to people that the kzg ceremony is still ongoing so if you haven't participated yet uh be sure to do so you still have 38 days left and we're at over 31 000 contributions so far which is absolutely awesome like and there's still 3 600 participants in the in the lobby at time of recording here so we've made a lot of progress on getting as many participants as possible into this thing um you know obviously it depends on the quality of the participants and quality of the contributions and it depends on how many people are trying to farm and airdrop even though it makes no sense that there'd be an airdropist uh like I don't know I mean fair enough if people want to farm an air job and I've discussed this before I basically said that's actually a net positive if people

think they're going to get an airdrop out of it because it means we get more contributions uh but yeah if you haven't contributed yet you still have 38 days left and you can go visit the website I'm pretty sure they've ironed out a lot of the initial issues that they had so you should have better luck of getting your um uh your uh contribution in if you if you failed in the past all right moving on so Chris Hagar from the flashbots team has some exciting news for us today that relayscan.io which is the powerful tool for monitoring ethereum Mev boost relays is now open source so I've gone over this tool before and you can and and I've shown about I've shown this tool to you guys before and what it kind of tracks you are and uh how it tracks Builders and relayers not just uh the relays

themselves uh and as I said this is now open source so that's why I'm highlighting it again today so if we go to the last seven days and see what's been happening here in terms of percentage of of blocks uh for relays and and builders you can see that and the relay they actually call it payloads uh because they're tracking the Builder payloads that are being sent over and then the for Builders that they're tracking blocks so the amount of blocks that these build these Builders are building uh and it's and it seems a lot more I guess like it's very different depending on what you're looking at you can see here the top three Builders basically a neck and neck at about between 10 and 11 000 blocks whereas the relays in terms of payloads are not so neck and neck whereas flashbot still dominates with 28

000 payloads or 58 uh share whereas blocks route Max profit is coming in second place with 7 000 or 14 share so it's obviously lagging by about almost uh I guess like 4X or pretty much exactly 4X here uh which is fine because these things have been growing anyway but then as you go further down there uh such as the block native relay agnostic relay and ultrasound money relay they're a bit more closer together as well there which is very cool to see now the fun thing about these Builders is that Builder 0x69 so okay let's just take a step back before I say what the fun thing is here Builders themselves can also censor things right it's not just the relays that can censor the transactions because of ofac whatever Builders can do it as well so that's why

both relayer and Builder are I guess like um decentralization or distribution is very important here now Builder 0x69 as far as I know does not censor because they also have a non-sensing relay that they have illuminate democratize distribute I don't believe sensors beaverbuild.org I don't believe sensors um uh but the thing is is that even if you're only supporting non-censoring relayers at least it's from my understanding even if your validators are only running non-censoring relayers you could still have a block that you propose that has a bundle from a builder that has censored in their block so while the relay won't censoret the Builder will at least that's my

understanding of how that works uh there now I believe there are a lot less builders that sensor as opposed to relayers and as you can see the Builder um I guess uh distribution is a lot better than the relay distribution at least right now um and I guess Builders slash they are also known as Searchers are obviously very specialized roles and a lot of them are actually um Anonymous too A lot of them don't really want to reveal themselves run race or another uh but this site does a really great job of tracking all of that and as I said it is now open source you can go check that out for yourself and it's funny a few of the blocks that I've actually proposed as part of my mini pools uh have had Builder uh uh sorry Builder payloads come from beaver build org and I'm only supporting non-censored

relays on uh on my um on my mini pools here but it doesn't mean that Beaver build can't censor transactions as part of their payloads or part of their blocks anyway there but anyway uh you can go check this out I'll link it in the YouTube description below all right so Connexus amarok upgrade is now alive now I'll talk about this the other day briefly uh and I've talked about it I guess a few months ago about how this was coming but essentially it is now live on mainnet now the cool thing about this and I had I had someone highlight this for me that they wanted me to cover this is that uh with this upgrade this actually makes connects an application specific optimistic roll up and one that's specifically designed for

to synchronize the state of other Roll-Ups now this is really cool because I think this is the first bridge to do this uh and I should disclosure I am an investor in connects but I I think this is the first bridge to do something like this and to make a solution like this now connects is being built by ethereum ogs they've been working on bridging scaling infrastructure for quite a while now so I'm not surprised that they've been able to create something uh as cool as this and as interesting as this and I'm just really happy that it's now finally live on Main that obviously um there's a very long Twitter thread here along with a blog post that explains all of this but the fact that they've been able to create an optimistic roll-up essentially for for a bridge here uh is

really really cool now you can actually see here what the that connex's modular architecture looks like so they're taking on board that modular architecture that we're going to be working with generally for um the ethereum ecosystem uh you know as a whole here and they've got like a few explainers here of how this works and a few Graphics I mean the the Tweet thread is way too long for me to read to it's 27 tweets here I believe along with the blog post but if you are at all interested in bridges in Roll-Ups in how a connect is using optimistic roll-up technology to power their Bridge you should definitely go check out the thread and the blog post which of course I'll link in the YouTube description below and if you want to try out their Bridge you can with the amarok upgrade live obviously you can go to

bridge.connects.network and check it out for yourself by obviously connecting your wallet and and things like that as well there so yeah I will leave this Linked In the YouTube description for you to check out alright so fire has a great little tweet thread out today uh basically describing how to analyze a transaction using etherscan now a lot of you may be confused when you go to eat the scan and see there's so much information thrown at you when you go to a transaction or a transaction hash uh and see all these different information you have no idea what's going on on there and you can be forgiven for that because it is quite complicated I mean it took me a while to actually learn what all other things meant and I wouldn't say I'm an expert on it I can't necessarily read contracts I can't read State changes things like

that but I can do enough to analyze the things that I want to analyze but in this tweet thread fire goes through exactly what is etherscan what is a transaction hash what is a block and what are block confirmations and whether you know these terms or not you can further your knowledge of of all of this with this tweet thread from fire so I just wanted to hide this for you guys to go check out I'll of course link this in the YouTuber description below all right so a pretty big announcement slash I guess a bit of news that I came across on Twitter from Sebastian here so I've been talking about real world assets a bunch on uh both the refuel and Twitter over the last few months and make a deal where uh Sebastian is

actually um a Community member of and actually does a lot of work for them have been at the Forefront of bringing these kind of uh uh rural assets on chain but there are other projects out there doing this as well so Sebastian in his Twitter thread here starts off by saying permissionless tokenized Securities are here thanks to backed Finance so this is uh what's called well the token name is uh B cspx which is now tradable in uni swap but obviously it might get kicked out from the UI because it is a security so if the official Unison front end senses it on the UI you can just use all the other ones uh but basically what this is is that uh what this token is it's a wrapper all on top of something called the cspx which is the SPX or S P 500 100 ATF issued by

BlackRock and you can raid the the legal documentation for yourself as well at backed assets.finance and make an opinion for yourself if you want to use this and the structure of how this works is detailed here as you can see it's quite complex and I remember talking about this with real world Assets in that to make a real world asset work and to make it work in a legally compliant way and in a way people can trust it on chain takes a lot of this uh just like meat space stuff that goes on so you can see here that there is an issuer at the center but then you have a custodian you have a security agent you have a tokenizer you have a bunch of other a kind of a clients like retail investors and professional investors you have all these different parties that kind of

play into this and it gets kind of complicated quite quickly and then ultimately your only claim on this sort of stuff is the IOU that you have because obviously it's not the real asset so to speak it's an IOU of the asset and then you if you want to redeem it from The Source you you might not even be able to do that but if you were you have to go through all these steps to do it and definitely have to kyc you would definitely have to complete AML checks and all that sort of stuff um but the point is is that we're bringing these I guess like assets on chain and we're figuring out ways to do it now these will things will hopefully be simplified over time a lot of them have to do with regulatory existing Regulatory and legal Frameworks which hopefully over the years I mean it's got

to be slow moving but hopefully over the years will be updated to reflect the efficiencies that blockchain brings to all these sorts of stuff uh but for the time being we have to deal with this in saying all of that I think it's still a very positive thing that we have this live and tradable in unisop right now uh because as I've said before the real world assets trend is is going to heat up very very quickly uh we already have obviously tons of USD stable coins and other Fiat stable coins on chain right now they're quite popular popular but they're not the only I mean they're far from the only real world asset that will be brought on chain uh but if you're not interested in this if you're only interested in Native assets to crypto networks or digitally native assets assets that's totally fine as well but I

think that it depends on your mindset too like for me for the longest time I've been completely disinterested in owning any kind of uh stocks or any kind of like real estate I personally want to keep pretty much all of my capital or all of my free Capital besides my primary residence in crypto and I've I've made that conscious decision because I believe that crypto still has a ton of growth left it's where I have the edge as an investor I have no Edge in the stock market for sure and I have no Edge in property investing and also I'm still in I mean I am more in the world preservation preservation stage than I have been in the past but I'm still in uh wealth accumulation mindset as well I still want to be part of the wealth generation that this ecosystem that I believe this ecosystem is going

to generate especially over the next five to ten years for pretty much everyone that's invested in our in it while people that are invested in uh the quote-unquote right things and then what that is is anyone's guess but I have been thinking about okay what it's going to look like in five to ten years where I believe that I either no longer have an edge in crypto because the market has matured it's gotten really noisy it's very hard for me to find Opportunities or where I've got you know so much Capital that I would rather not risk that capital in crypto and I'd rather put it into maybe some stocks or maybe a stock index uh or maybe some property obviously I want to have a substantial potion on my portfolio always in eth but as you guys know I'm never selling my my eighth um and not even my kind of like

staking rewards so if I could go and buy an investment property or stocks in order to generate passive income from that via dividends or or rent that would be really cool and obviously everyone's situation is different but the point I'm trying to make here is that if I was able to do this on chain I would like be much more inclined to do it because I dread having to go through the traditional Finance system to buy anything right to buy AI any of these stocks to do anything like that I dread it I dread um the slow processes I dread the fees I dread the fact that I won't be able to uh to essentially do what with the assets what I want uh it basically just sits there uh I you know that then I mean well actually what I dread the most is the inefficiencies of it coming from

crypto and going into Trad fire it hurts guys like it really hurts I had to do a wire transfer my first one in a long time and I believe I mentioned this on the refill when I did it it took like a week I had no confirmation that the money had been transferred into the desired account I actually had to ask the person hey had the money come across right um and then you know it took a week right and this was obviously uh an overseas wire transfer I'm in Australia it went to uh I'm not going to name the exact country but it went to somewhere in uh in Europe but to do that on chain right and this and it actually in the in the wire it involved a lot of Feasts because I had to go from AUD to the to the Target currency there but to do this

on chain all it would have to do was I go from my Australian dollar um centralized exchange I'd buy usdc right I transfer that to my ethereum wallet and then I transfer that to their ethereum wallet and this is all done within five to ten minutes and now I have full auditability of that entire flow and I've gone through this before so I'm not going to rehash it now but I have full auditability of that entire flow and I can actually check for myself to see if the transaction has been confirmed now if I was just doing it all on chain I could potentially have my transaction confirmed and much of the time I will have my transaction confirmed in one ethereum block which is 12 seconds so 12 seconds with full auditability traceability uh as opposed

to one week like it's actually ridiculous how stupidly more efficient that is and the best analogy I can think of or the best kind of like example I can think of of what else we've seen this happen in is obviously Communications so an email is is infinitely faster than sending snail mail if I was to send a letter it's an install mail to the other side of the world it would take probably a week right and that's being optimistic it'd probably take longer than that an email is pretty much instant to anyone in the world right to anywhere in the world um and it doesn't require all of the I guess like uh uh physical um uh not infrastructure but the physical kind of manpower to make that

work obviously there is a lot of infrastructure that's that exists for the internet that ex that requires maintenance all that stuff but uh the costs are just collapsed there and the speed of communication is absolutely collapsed so crypto and blockchains generally are doing what the internet did for communications but for finance instead and these real world assets are definitely coming on chain they're going to be a big theme of the next few years and it's going to encourage more and more people to buy these assets to play around with these assets to get invested with them and it's going to increase the overall efficiency of the traditional economy as well as the digitally native one there but anyway going to move on from that one just wanted to hide that for you guys I'll link Sebastian's Twitter thread in the YouTube description below if you want to learn

more about that all right so we have a big update from metamask today so they started off this Twitter thread by saying uh uh starting today extension users will see an updated experience when creating a new wallet as well as an update in their privacy and security settings uh so the update is when creating a new wallet users can users can click on set Advanced privacy settings to change their RPC providers and toggle features that send requests to third-party services that help with phishing detection and identifying incoming transactions among others so this has been something that metamask has come under scrutiny for basically tracking people's uh IPS and using obviously the RPC and tracking what they're doing transaction wise and and tracking what what they're doing with different sites

they're interacting with but basically you can now uh configure this you can add your own custom ipfs Gateway you can obviously change your uh your default RPC here and turn off these Advanced features if you don't want them which is very cool to see out of metamask and the Twitter thread to explain some more of this but it's not a long Twitter thread here but great to see that they've taken Community feedback on board and implemented this because it was definitely a massive cause of concern from the community and it probably definitely made people switch over from metamask to something else even though I don't believe there are actually that many great privacy preserving Alternatives right now to metamask there is frame dot sh which is pretty good um but I haven't used that actually in a little while I used it a while ago and

there were some bugs with it but maybe I should give it another go but apart from other people that it's still quite good and it protects your privacy and you can obviously use it with your own full node and things like that as well but I just wanted to highlight this from metamask because uh credit where it's due when it comes to these sorts of things so thank you metamask for putting these features out there all right last couple of things here just a couple of shout outs so Patrick McCory has put together a resource here a total help ethereum proof of stake works and over the course of the next two weeks they're going to be publishing uh uh I guess like articles and updating these links uh and this was actually published on January 13th this original blog post uh and I originally I think

covered it on the refuel but it's been updated with a lot of different blog posts now so there are only two uh blog posts left to publish on sway attacks and sync committees but the rest of them have been published you can find links to them in this blog post which I'll link in the YouTube description below but if you're interested in diving deep into how ethereum proof of stake works well this is your resource this is a very easy to understand resource it is not too technical it comes from Patrick mcquarie who is at the Forefront of these things so you should definitely go check this out I'll link it in the YouTube description below um but that's it for that one and last up here was just a podcast from the zero knowledge podcast they're recorded with Trent Van Epps and Carl here all about

the kzg ceremony and and proto-dink sharding slash Erp 4844 so you can go listen to this podcast I'll link it in the YouTube description below but that's going to be it for today so thank everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to newsletter join the Discord Channel and I'll catch you all next week thanks everyone