Arbitrum DAO airdrop, Turnkey announced and more - The Daily Gwei Refuel #553 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of The Daily gray refuel where we cup the latest news in ethereum ecosystem I'm your host Anthony it has the 22nd of March 2023. all right everyone let's get into it so I'm sure some of you have already seen this but uh the upgrades or I guess like the new versions of various clients uh for ethereum have been coming out that support Shanghai so you can see here on my screen that Geth version 11.5 is now out which enables the Shanghai mainnet upgrade on April uh 12th here so you can go uh check this out obviously and download it if you're running nodes or um obviously if you're running node you will it is a required up update upgrade especially if you're running validators uh and same on the consensus layer side

of things now not all of them are out right now but there's a few out there I've seen that have been released but obviously they'll all be out in time for Shanghai so if you are running full nodes archive nodes validators you know consensus obviously consensus layer clients and execution layer clients you will need to update this is a required update in order to stay on the uh I guess like true ethereum chain right because if you don't update you'll go and Fork off onto another chain and your validators will suffer from an activity leak because you'll technically be offline so you don't want that to happen obviously if you're a solo Staker or if you're a rockable Staker as well now with rocketpool they usually uh update the smart node stack to enable these sorts of things but you can actually manually update uh the clients

yourselves if you want you can go change the flag in the in the smart node uh GUI uh which there's rockapool has documentation for this if you want to do that but usually you can just wait until the update comes out which obviously the next update is atlas which enables uh withdrawals on the rockapool network as well uh with the mini pools uh but yeah anyway we definitely go update if you haven't yet and if your client if the client that you use hasn't got an update yet be sure to just keep an eye out for that on their Twitter they usually announce that but on GitHub obviously is where it's going to be published so you can check it out on there for yourself but uh yeah just before I move on from the withdrawal stuff it's finally here guys like it's very very close neon it's

March 22nd today April 12th uh I mean it's going to be here before we know it and what I find funny about about withdrawals generally is that it was something that obviously all of us in ethereum knew was coming really soon and I've been talking about it for a while as well and telling you guys it was coming you know late March early April uh and there was so much fun around it and there still is I still see people commenting on Twitter about like people staking their ears saying haha you staked your teeth you can't get it out which obviously is really stupid for a number of different reasons but the fact that Shanghai is so close and people are saying this like it really is bizarre to me that that people are still saying this and you know even though like even leading up to the merge people were

still saying that the merge would never happen I don't know if these people are genuinely just unintelligent or genuinely stupid or if they're trolling I'm sure there's a bit of both in there but I don't understand how someone as a human can be that stupid right like I don't get it I've never got it I've never gotten how someone can be so I guess um I guess buried their head in the sand uh so much that they miss exactly what's happening and they missed the reality of the situation now of course I'm very curious to see what these uh Fighters pivot to after withdrawals are enabled because they've also stopped fighting the um the censorship on ethereum the ofax sanction stuff because of the fact that that's down to below 30 now of all blocks so

what's left really I think they're going back to their old faithfuls I've seen a lot recently of people saying you know ethereum's monetary policy can change all the time Vitality controls ethereum blah blah blah so it seems like they've run out of things I guess of of new things at least uh which is just hilarious right but I'm sure there'll be new things that come up and and I'll definitely be correcting them on the refuel as time goes on um but yeah the in in a couple of weeks they won't be able to say anything about withdrawals not being enabled and about how Vitality controls your ether whatever they come up with uh it'll be enabled and everyone will be able to withdraw their stake now obviously in saying that light O's withdrawals aren't going to be enabled for a month until at least a month after

Shanghai goes live so maybe we'll see some fight around that but uh I don't know you don't need withdrawals live on Lido to withdraw you can always sell into the secondary Market if you want yes you may take a small hit uh based on on liquidity if you're a big if you're a big state car um but yeah I think that doesn't apply to most people anyway it's just a obviously applies to the whales but anyway I'm going to move on from that to a tweet from Josh Stark who uh tweeted out this picture from l2b this activity I guess chart that shows L1 and L2 activity L1 in blue and L2 in red where any caption by saying a blockchain's transaction capacity is equal to the capacity of its L1 plus the capacity of

all l2s under its security now I very much agree with this and I've talked about this concept of ethereum block space before we're essentially layer twos are just an extension of ethereum's block space and I'm talking true layer twos like Roll-Ups for example the the things that post their data and their proofs to layer 1 ethereum so obviously arbitrim and optimism uh fit into that uh but essentially it's just more ethereum block space because at the end of the day they're extending ethereum's block space uh and just rolling up those transactions to make it more scalable so it can uh and should be referred to as ethereum block space and that's what Josh is saying here that the block that ethereum's transaction capacity is equal to its L1 capacity as well as its L2 capacity but you can see here that l2's

flipped L1 in terms of TPS uh a little while ago and it just keeps going up that's obviously what we want to see uh that is very healthy that is the roll-up Centric road map on ethereum playing out but it shouldn't take away from the fact that ethereum L1 is still obviously uh has been has been flat because it's limited in obviously the TPS that it can do based on its gas limit but uh as Josh says here ethereum's total capacity is L1 plus L2 now in saying that I don't think TPS is the best measure of activity I've never thought that honestly I think economic activity specifically fear of a new is uh is probably the best way to measure a blockchain's activity because there are other chains out there that boast you know thousands of TPS but they're worth

very little the economic activity happening on that chain is very little uh the value of that block space is is very little compared to ethereum ethereum L1 block space is the most valuable block space in crypto by far and that's why people pay for it right even though the TPS is quite low I mean ethereum's TPS really you can see here is around what not even 13 transactions per second right so when you look at it like that it doesn't matter that these other chains boast thousands of TPS because it's not valuable right it's not valuable block space and I've talked about this before with the analogy of say I spun up a database locally and my database can do 100 000 transactions per second and Visa can only do 40 000 transactions per second does that make

my day database more valuable than Visa no because at the end of the day what's valuable is the state right the the state of visas database is a lot more valuable than than my database uh on on my machine because no one cares about mine right but everyone cares about Visa because it's a massive Global Payments Network the same is true for ethereum just because you spin up a new chain that can do such and such TPS doesn't mean that anyone's going to value that TPS value that block space value your database so to speak over ethereum and and I'm not going to rehash all the um the analogy that I've used before here but I think it's important to remember that when comparing things especially when comparing ethereum to other chains these days because you have to you have to take into account ethereum and l2s

for TPS for active users for economic activity for fair Revenue that all uh um I I believe uh comes together and that forms ethereum it's not just layer one anymore it's layer twos and as time goes on there's going to be more l2s that go live there's gonna be more activity that happens there and then we're going to have to have better dashboards to monitor all that and l2b obviously has been doing a lot of great work there but so has student analytics I've shown a bunch of dashboards uh before on Dual analytics that show these Hill Dobby's actually pretty good at creating these things and I've highlighted a bunch of his dashboards before uh but yeah that's the way I think about it that's the way I think about block space and the value of that block space

all right so a great thread from Matt Cutler today it's a 14 part thread where he starts off by saying a new mental model to help wrap your mind around ERC 4337 AKA account obstruction uh and 4337 adds a new quote unquote user intent layer um Upstream on top of the existing transaction flow the big unlock at least for Matt is working backward backwards from the current ethereum eoa or externally owned account model so just a normal ethereum account model so you can see here that he's put together an image showing this and I think my camera's uh covering a bit of the image here but you can check this out it'll be linked in the YouTube description below but it shows what it currently looks like at the top right what the current externally owned account or eoa

transaction flow looks like a user has a non-custodial wallet which is an eoa and eoa will sign a transaction it will go to a mempool then it will go to obviously through the Mev uh boost life cycle go to a relayer validator and then eventually end up on chain now with 4337 it changes this transaction flow and as you can see here user has a 4337 wallet and then at 43 37 intent and then you can see on the bottom it it actually does a bunch of different things it goes to an old mempool it goes to a um a surchar uh it gets bundled up the transaction gets signed and then uh it all plays out and you can see here on the right hand side how on chain it actually uh plays out differently it's how it would under an AOA now I like the

way he's actually visually displayed this because you can see here that the part where it actually happens or where 4537 actually um makes an improvement is that is the wallet interface there not I mean obviously at the end it also makes an improvement on chain but everything else pretty much Remains the Same and and you've got like a an expansion here of the of of the wallet infrastructure I guess like the wallet interface uh for the user so that's that image there which I said you can check out in the YouTube description below but Matt actually makes this down uh breaks the whole image down for you in his thread so I highly recommend giving it a read there if you haven't done so yet to understand this better but I think uh getting your head around how 4337 works

why it's a big deal why it's going to improve things for users is definitely something that I think a lot of people should be doing these days definitely something that I think all of you should be doing uh and as I said I'll link this in the YouTube description below for you to check out now this definitely talks to a lot of the stuff that I've been saying over the past few weeks where I feel like that wallets are finally going to get the upgrade that they've needed to get for quite a while now it's finally a concerted FNA concerted push to adopt these standards and to make these things a reality so it's great to see people like Matt breaking this down for everyone so that we can actually follow along and understand what's happening under the hood but yeah as I said this will be linked in the

YouTube description below for you to check out all right so I talked the other day about how arbitrim's airdrop isn't just to users but is also to the various uh projects on the arbitrim network that have Dows now the official list for this was released I believe uh yesterday uh and it shows basically the allocations for each uh Dow arbitrim app on on arbitrim here so if I go to the actual list it's here it's on Google Sheets you can check it out for yourself of course but you can see here what each project will be getting in terms of ARB tokens now treasure will be and GMX will be getting the most they're getting 8 million ARB tokens each each now if you obviously uh assume a one dollar ARB

price based on uh the fully diluted value of optimism uh if arbitrim is the same it'll be around a dollar I think treasure and GMX are getting eight million dollars worth of ARB tokens to distribute to their users or to really do whatever they want with right it's going to the treasury of these Dows now you can see a bunch of other apps are also getting airdropped a bunch of ARB tokens now one that I really wanted to highlight was protocol Guild and I actually put a tweet out here where I said the arbitrim off chain Labs team airdropping three million ARB tokens to protocol Guild is so effing based love to see layer 2 supporting public goods now as I just said if the price of ARB is a dollar right if you assume the price of Arby's a dollar uh then the

protocol Guild just got three million dollars from uh from arbitrim which is absolutely awesome to see uh obviously you guys know I love the protocol guilds and it is an exception here in that it's not a quote-unquote app on top of arbitrim but arbitrim or the off-chan labs team wants to support public goods and ethereum wants to support core protocol development and that's exactly what they've done with airdropping these tokens to the protocol Guild now of course arbitrimp isn't the only one to do this optimism has also done this with their retroactive public goods funding um and they're actually doing that through there they're actually going through round two right now where they're air dropping a bunch of op to various public goods within the ethereum ecosystem and I'm sure a lot of the other L2 teams are layer two teams are

going to follow here especially when it comes to l2s that don't have a token yet potentially air dropping a portion of that token to their uh to the apps obviously on on their um respective networks but also to protocol Guild and other public goods out there uh I I just think it's awesome like the whole point of the protocol Guild is to get the projects that are building on top to donate a portion of their treasury uh in their obviously native token to the protocol Guild and it's been very successful at that at that so far it's been a year since they launched and they got 10 million dollars in as part of their pilots and their goal is obviously to get billions of dollars in eventually well this is how we get there you can imagine if they you know potentially hold on to the ARB tokens or maybe they

pay it out to uh to um their 130 core contributors and they they hold on to those up tokens and they go up you know that's just great it really does align incentives yeah and I really think that it's a it's a great way way to ensure that the people building The Core ethereum infrastructure are rewarded by the projects that are taking advantage of it so very big kudos to off-chan Labs here for doing that but yeah you can check out this full list for yourself I'll link it in the YouTube description below I'm not sure exactly how each app will distribute these tokens they'll probably do some kind of liquidity mining campaign or maybe they'll airdrop it to their users based on a certain criteria but I'm not totally sure here there is a bunch of of tokens been given out to uh I think it's like it's a lot

of projects actually 137 different projects but they all didn't get the same allocation it seems to be the I guess like top 30 gets the bulk of it and then there's a bunch of other apps below that that get um they get a bunch there but you can check that out for yourself I'll link it in the YouTube description below and you can also read arbitrim's little Thread about this as well discussing uh the rationale uh and the reasoning behind this all right so a new piece of infrastructure has been revealed today or unveiled today called TurnKey which is a simple secure apis for managing private Keys now I shall disclose that I am an investor in TurnKey I invested in them a little while ago now I'm uh their the their Founders are from coinbase

they were actually building out a lot of coinbase's private key infrastructure to have so that for coinbase custody so they have a lot of experience here so if you go to the turnkey website you can actually learn more about them obviously you can learn about them in their blog post CR they raised a 7.5 million seed round of which obviously I just said that I was a part of and you can join their waitlist sign up here but basically managing private Keys especially for Enterprises is something of a hustle um from a variety of different kind of perspectives num I think the number one perspective or the number one reason is security obviously you want to manage your private keys in a way that keeps them as secure as possible now coinbase custody has or a coinbase generally has been the gold

standard for this as far as I know there has never been a hack or a leak or anything happened happens to coinbases uh cold wallets and hot wallets because they go through a very convoluted process to be honest of generating their private keys and keeping them secure and they actually detailed this process they go as far as having uh kind of like these tents that they go into that block out all the other signals and everything and they generate the private keys and they do this ceremony where they generate them and then they use them and they secure them in a way where obviously they aren't they aren't detailing the way they secure this but it's pretty sophisticated now as I said the people working on TurnKey are a bunch of them especially the founders are X coinbase they worked on this sort

of stuff at coinbase so they definitely know what they're doing here and you can see here that uh basically what the what they've built is a simple and Powerful API for developers to kind of plug into in order to manage private keys in a secure and simple way so if that sounds like something that you are interested in you can go check this out I'll link it in the YouTube description below and you may be wondering why I'm bringing this up and what this has to do with ethereum I'm not just bringing this up because I'm an investor in them uh what it has to do with ethereum is that obviously ethereum works like every other blockchain out there with public private key pairs so making it easier for developers to uh to build their worlds to generate things like this to generate especially for institutional

clients uh uh ethereum wallets and to secure ethereum while it's in a better a more robust way and for for applications to do this as well is obviously critically important to ethereum's future so that's why I backed this team obviously because I think this is something that is definitely solely needed and I think it's going to be a huge uh level up for obviously ethereum infrastructure but also crypto infrastructure more broadly now you can go check this out as I said I'll link it in the YouTube description below all right so a big announcement out of CCP games here now this is an unfortunate name uh this is not the Chinese Communist party games this is

the game developer behind Eve online which is a very popular uh or traditionally being very popular uh MMO so you can see here that uh they've actually raised 40 million dollars in financing led by a16z to create a new AAA game within the eve Universe utilizing blockchain technology now Paul and I are had the best I think take on this where they started off their thread by saying this is the first project by a major game developer using blockchain Tech that makes some sense to break down my interpretation of what's Happening Here for the most part it'll likely be a traditional MMO with an economic Focus like Eve online however the problem with Eve online is there was never a conversion between in-game currency and Fiat to evade regulation crypto will

allow CCP to skirt regulations while also having an in-game currency to natively have value this will definitely not solve Eve's problems with inequality unfair griefy economics exploitive ponzies but it'll make it easier and more transparent the other enhancement is by having some systems on chain that remains to be seen exactly what this is hopefully it'll enable a novel a gameplay so I I definitely agree with this take I've been cautiously optimistic on blockchain games generally but where I think they make a lot of sense is the games that want to have in-game economies and Eve online is the poster child for that Eve online has the as far as I know the biggest in-game economy of any game and especially in terms of age and persistence because it's it's an online game so I think that

the CCP games the creator of Eve online can definitely create a really cool game within the eve Universe taking advantage of all the benefits that that Pauline outline TR when it comes to transparency um and basically being able to create an on-chain economy that allows for going from you know in-game to Fiat and and back again and stuff like that so I'm definitely cautiously optimistic about this now they have a lot of money obviously with 40 million funding uh led by a16z here to make this a reality and to build this out I'm not sure exactly when this is going to go live or when it's going to be playable or anything like that but I think if anyone can pull off a proper game or a full AAA game with uh proper crypto features proper

in-game economies built on crypto technology it would be uh the CCP games here now I'm very curious to know what technology they're using to to utilize this or what chain they're going to be using I don't know if they're detailed it I haven't looked at their docs yet but you know who knows will they be using a new layer 1 chain will they will they be using a layer 2 an existing infrastructure I think that they should obviously use a layer 2 for this and not uh probably not a roller but like a validium-like construction where they store the data off chain and they have the proofs on chain and they can scale really really high they could probably tap immutable and polygon for this and I I discussed their partnership yesterday about how immutable is going to be launching their own ZK VM who knows or

maybe they'll make their own uh thing you know in-house maybe they'll make their own technology in-house to suit their needs that might be more likely just because uh they probably have a lot of things that they want to have control over or maybe they'll Fork the existing technology and make their own thing we'll have to see and if you guys have any additional Insight on this be sure to let me know and you should describe in your YouTube comments or on Discord uh but yeah very very cool to see this as I said I'm cautiously optimistic about it and I'll keep you guys updated on the progress here all right so another update on the Euler exploit now this update is a bit of a funny one so the Ronin Bridge exploiter so the rodent Bridge was uh the bridge is part of the axi infinity ecosystem

that was exploited by the Lazarus Lazarus Group which is North Korean uh Affiliated they actually sent a message to the oiler Finance exploiter saying uh decrypt with the private key of such and such on GitHub uh which was apparently I I think a a a an attempted phishing attack in order to get the Euler exploiter to sign something or do something that would allow the um Ronan bridge exploiter to access the funds now the reason why this is this is funny is because is this psyops like is the Euler exploiter the north the same as the Ronin bridge exploiter and they're just doing this in order to to fool people or did they do this because the oil

exploiter sent a bit of funds to the Ronin bridge exploiter and there's basically being like hey you know send the rest of the funds here or are they doing this because they think that they can fool the oil exporter into doing this I don't know it's weird as I said the oil exploit seems to be one of the weirdest ones that I've come across and this just adds to the weirdness yeah and Hudson Jameson has a thread here where he says the repo linked by the Ronin hacker uh has a vulnerability in the elliptic Library it's a trick so they can steal money from the oil Explorer so obviously don't interact with that Library yourself either but yeah just another weird turn in the uh in the kind of like events surrounding the oil exploit uh there's no additional news here on uh funds being returned or

anything like that but really all they have to do if they want to return the funds is send the funds back to the Euler con uh the Euler Finance team that's all they have to do literally it you know they don't have to download any fancy programs or do any fancy other stuff and message parsing just send the funds back that's all they have to do so um you know maybe maybe they listen to the refuel that's all you have to do please do that you know be a good um be a good person do that uh and I I I and I think you'll make a lot of people happy if if you do that but uh anyway just wanted to give you guys an update there on that and highlight that because I thought it was just another weird uh piece of information or news I guess in

this Saga that is the Euler exploit all right so just a quick shout out here I've talked about far Custer before and about how it is an alternative to Twitter it's basically a Twitter clone that's trying to do uh Twitter in a decentralized way well now you can actually use it on the web so you don't have to um use it on your mobile on just your mobile anymore or on just Mac OS you can use it on the web across any uh basically operating system or browser that you want to so now using warpcast at warpcast.com you can log in with a QR code you will have access to your home theater notifications ability to cast like and recast and this is obviously especially useful for Windows and Linux users now I

connected my my account to this on desktop it was a really really straightforward procedure it worked very well and now I can send casts via the desktop app for warpcast here now the firecast style has been actually a pretty active platform for a little while I've gone on there a few times and seen a lot of people sending casts a lot of people interacting on there some people will mirror their tweets to forecaster to kind of have them published both on there traditionally for me I haven't really used it because I haven't been able to use it on desktop I don't actually do much uh uh uh I don't actually use my phone very often I don't do much tweeting from my phone or anything like that so having the ability to do these kind of things on desktop is

obviously a Big Boon for me and I probably uh probably is for you guys as well now I think that in terms of the top two kind of front running decentralized social media applications right now it would have to be lens and far caster and they seem to be going after different segments of the market I think firecaster definitely wants to be and a true alternative to Twitter wants to keep most things the same in terms of interface but integrate with web 3 integrate with crypto related things and make that whole experience more seamless whereas lens they definitely want to do that too but they're creating their own kind of ecosystem they're experimenting a lot more with things they have their own things like you know you have a DOT lens name right that you can that you can attach to your to your lens profile

and things like that and I like this I like the experimentation that we're seeing here uh you guys know that I I've said I I've kind of discussed before about all the issues with the centralized social media that I've seen and about how I think that the only thing that really needs to be decentralized is the social graph uh and once that's decentralized you can kind of have portability there and you can integrate with crypto features and all that good stuff there well that's exactly what I think platforms like fire caster and lens are trying to do so you can go check out both of them for yourself I believe farcasta is still invite only um if it is uh I I do have invites so I think I have like 70 invites so if you do want to check out filecaster and you don't have access to it yet you can tag

me in the Discord Channel maybe I'm going to regret saying this but you can tag it in the Discord Channel and I'll get to you and if I miss you you can tag me again and I'll send you an invite to firecast that to to check out for yourself there but only on Discord not on YouTube comments or anything like that and not on Twitter DMS just on Discord if you if you do have the ability to DM me on Discord because you already have an open line of communication there you can do that as well I'm not gonna DM you first because there's too many scammers um but yeah in the public Discord Channel or through DMs uh you can shoot me a a an Ask there for a forecaster invite and I'll be sure to get to that when I can obviously I might be slow

especially if I'm sleeping but I'll get to it when I can then you can check out far Custer for yourself but on that note that's going to be it for today's episode so thank 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 newsletter join the Disco Channel and I'll catch you all tomorrow thanks everyone