Circle and Blackrock, EIP-3074 in Pectra and more - The Daily Gwei Refuel #764 - Ethereum Updates

Transcript

hello everyone welcome to another episode of the Del refuel W up latest news in etherum ecosystem I'm your host and S the 12th of April 2024 all right everyone let's get into it so welcome to your Friday episode last episode of the week uh I only rug field once this week so thanks thankful for that I guess uh for myself and and for you guys there but uh there's a lot to get through today uh particularly around cordev related stuff and EIP 3074 I'm sure you guys have seen all of the chatter and a bit of drama around that that was on Twitter today and I'll explain why and I'll try to explain uh basically you know what the issues are you know what I think about them and so on and so forth like I normally do so kicking off is just this cast from Tim bikro today

basically talking about all the decisions that were made on the latest allore Dev course so EIP 29 35 and EIP 3074 are now going to be included in pectra uh eof and 7623 are on the short list uh EIP 7667 which proposes snark friendly gas cost on L1 is on the short list for the next Fork after Petra I believe and then there's a whole kind of uh summary here screenshotted which I'll link in the YouTube description below for you guys to check out but obviously the main thing that I want to focus on today is e 374 now this is an EIP that is not exactly new it has been around for quite a while I think it's been around for at least 3 years uh yeah since 2020 I'm just Googling it here so

October 2020 this EIP has been around uh and for those of you who don't know what this EIP does or is basically at a high level it is an EIP that aims to give uh smart contract wallet functionality to normal ethereum wallets now we call these normal ethereum wallets eoas or ethereum sorry externally owned accounts so there are two main types of I guess like wallets you can say within the ethereum ecosystem today there are EAS which is literally just a normal wallet like when you set up a new kind of metamask wallet or a rabby wallet you're given a an EA it's just a normal public private key wallet uh that everyone has pretty much interacted with I guess at this point in time uh it's not a multisig wallet it's not a smart contract wallet it's nothing like that just a normal wallet and we call those

externally owned accounts now the second type is what's called a smart contract wallet now these wallets are things like Argent and safe so NOA safe is probably something that a lot of you have heard of and used before it's not called nosis safe anymore because they spun out of noses but it's called safe now now with smart contract wallets they have a lot more functionality in built because they are built using smart contracts so essentially what uh what can happen is that basically anything you with a smart contract you can Implement that functionality uh into into that contract uh for for a wallet and that's what safe does so multisig for example is the most is is the most obvious example here where essentially you can create a multi- using a smart contract wallet you cannot create a multi- of an externally owned account or an EA an EA is always

going to be a you know one private key um you know tied to a public key whereas a smart contract wallet is going to I mean smart contracts don't have private keys but it's going to be controlled by an externally owned owned account or or created by an externally owned account and then uh there you can create a multisig out of that or it can just be like a a single sign of thing uh but yeah that that's kind of the two different different things here now with 3074 the aim is to essentially give I don't know if it would give all of the functionality of smart contract wallets to EAS but it aims to give a lot of that functionality and one of the biggest things is around approving and uh kind of like sending a transaction so right now all of you know that in the current

flow on ethereum L1 when you go to like unisoft for example you have to approve a token for trading then you have then you do the swap so it's two separate transactions what 3074 will allow uh uh people to do is not do that so you just have to do it all in one transaction it basically bundles it all up and you'll just do it in one transaction now obviously that is a huge quality of life Improvement for users there and this can also be done at layer 2 all the evm layer 2s can do this if they so choose but this obviously is uh is an AIP for layer one so this will apply to layer one and there are a bunch of other things like gas sponsoring so essentially another account can sponsor your gas fees for you as part of an EA

so you don't need a smart contract wallet to do that now uh and and a few other features out there I'm not here to kind of go on about the features of of 3074 uh you know you can read those in I believe there was a blog post that I linked from domothy a little while ago I might bring that up so I can link it again for you guys to go read because it was a great overview of e374 and it was released only last month I believe yes in March so I'm going to to bring this over here for you guys and I'm going to link it in the YouTube description below for you to check out but this gives you an overview of everything that I've just said just in more detail but yeah hopefully I've given you a good enough summary there now of course there is a

little bit of drama around 3074 as there has been for quite a while now around things like what zerx and GMI tweeted it where he said the downside of a374 is that now it'll be possible to fully drain an address all your tokens all your nfts all your def5 permissions with only one bad signature now of course this is possible in a practice or I guess like in theory but in practice this is not from what I've read going to be a huge issue and Dan finle here uh one of the uh I guess like I don't know if I'd call him the founder of metamask but he pretty much is the founder of metam mask uh he's been building metamask since basically day one he replied to this tweet by saying I'm not aware of a consumer wallet today that is vulnerable to this that was an early

research audit task all a wallet has to do to eliminate this risk is to disallow blind signing opay caches and also not allow signing with this reserved prefix so essentially it's on the wallets now to well should I mean generally it should be on the wallets to protect users I believe from signing things they shouldn't be signing in the first place regardless of if it's a374 or not because obviously uh we've seen people lose a lot of funds and and and you know nfts and and tokens and stuff like that to draining uh events that happen due to approving a contract that they shouldn't have approved you guys know that I got fished this way with my op tokens so it's happened countless times before right and it's uh it's something that obviously we're trying to eliminate but

really where it needs to be eliminated is at the front end is at the wallet level because at the end of the day like you need to throw up warnings for users a lot of users aren't going to know what's happening or are going to ignore a lot of things that are happening or won't even know what they're signing right I mean uh there are instances of users actually signing a transaction getting their funds drained and then signing more transactions and getting their those other funds drained right and signing things they shouldn't be signing here so it really Falls I believe at least from my point of view it falls to the wallets it falls to the front ends it falls to any interfaces that interact with these things and allow signing of messages or signing of things from from an EA here it falls to

them to warn the users and to disallow this kind of stuff from happening uh because at the end of the day it can happen with or without 3074 so I I do agree with Dan's Point here and then Hayden Adams founder of unop here also replied to uh ZX ngmi by saying upside is that this is forcing wallets to improve ux around this such that more actions are recognized as explicitly safe and arbitrary unknown stuff is made to feel super scary / risky and I totally agree with this I think that the wallets should be doing much more around this I know you guys you guys know I've talked about rabie a lot in the past because they do this but there are so many more wallets other than rabie and a lot of them are liking in this department a lot of them need to be uh

protecting users from these sorts of things like I know that the ultimately it's the user's responsibility but at the end of the day like if we want to achieve kind of mass adoption if we want to achieve you know bring more and more people in uh and we're going to protect people from themselves which actually happens everywhere in the world mind you like there are so many things that we are protected from ourselves because we may not be you know uh smart enough to know that that's a danger right like if you're not familiar with something you may not know that's even a danger if you do that like there are obvious dangers like obviously crossing the road you want to look both ways before you cross the road but hey that's taught to us too like as kids we're taught W cross the road without looking both ways right so

I think the same concept needs to apply here where essentially the wallets need to uh be a lot better about showing the users hey do you really want to do this hey you should be checking uh what you're signing hey this looks dodgy for whatever reason and running heris sixs in the background in doing this because the wallets are the Port of Entry they're What mo they're what everyone uses at the end of the day like everyone has a wallet like we all have wallets doesn't matter which app we're using to uh to create those wallets and to manage those wallets we all have a wallet it's the only way for us to interact with uh with ethereum with pretty much any blockchain right so from that perspective uh because everyone has a wallet there should be protections put in place and there should be uh more

stuff done at the wallet level uh uh at that point and also at the same time the wallets because everyone has a wallet and because they are the Port of Entry they have uh the biggest opportunity to monetize directly like I'm not talking about doing a token I'm talking about like literal uh direct monetization metamask for example has their swap feature which earns them a ton of Revenue every month uh because people use it and they pay a 0.8% fee to swap through metamask and that's just a very simple example of how wallet are monetizing so really it's in their best interest to protect their users at the end of the day like it's it's really in everyone's best interest here so I think my overall point here is regardless of 3074 or not uh the wallets need to be doing as much as they can to protect

users from scams from fishing and all that and the other I mean every every service pretty much does this today like if you're using an email service like Gmail for example like go look in your spam folder there is so much stuff there that is just blatant scams blatant fishing but if it wasn't put in your spam folder there is a slightly higher chance or a much higher chance depending on the type of person you are of you getting scammed by that right and I have plenty of stuff that comes to my inbox that doesn't go to spam that is fishing but Google's filters obviously uh don't recognize that it's fishing and I look at it I'm like wow this is a really really well done fishing email and if I wasn't aware of these things because I'm just trying to be hypervigilant all the

time I might have fallen for this right so we're already protected a lot from these kind of things when we're online whether it be through our email accounts whether it be through online banking as well right um in crypto as well we we we're doing that but we need to be doing more here and I don't think it's an excuse to say that oh you know we shouldn't folder the wallets and of course it should folder the wallets to do this they are the Port of Entry they are the front if you don't want to do this if you don't want to protect your users then you shouldn't be making a wallet in the first place that's my little bit of a rant about that one there but there is another tweet here that you should read from Ivo who is the CEO at amb wallet here

uh where he you know mythbusted a bunch of this stuff by saying the same thing you know he said that this issue of all the funds getting drained by one signature is a wallet UI problem wallet uis should simply not accept requests to sign this uh from daps or untrusted sources it's that simple so again for of the wallet here I think there's a lot of pearl clutching about these risks with 3074 and I also think that it's kind of ethereum's Y2K moment where everyone thinks that oh my God everyone's wallets are going to get drained when IP 374 uh goes live in Petra which is still a while away now but I mean by the time Petra comes out I believe the wallets are going to have updated themselves to make sure that they're not exposed to this at all and that is a net win for

everyone that means that the wallets are going to become friendlier they're going to become more secure and they're going to be better for everyone so at the end of the day on net 3074 is a positive so I'm very very glad to see it going in there but you can go read ios's full tweet it's a bit a bit of a long one so I'm not going to read it out for you guys I'll link it in the YouTube description below for you to go check it out all right moving on so there's another update uh from the vle crew here so the vericle implementers call number 16 was uh had I believe yesterday and uh essentially there is a lot of updates here so this week's agenda included updates usual updates like client team updates testing updates and and and and so on and so forth but then also talking

about a test net relaunch and a um a corner case for the block has gas that they found here so as usual I'll link this tweet in the YouTube description below for you to check out but really I think what a lot of people are interested in around test Nets and relaunching and doing test Nets uh so they're doing a bunch of changes with the upcoming uh test net to uh test uh you know the Arps that are part of the vehicle con of tree roll out here which you can read details about in uh in this tweet thread uh but what oh in this tweet I should say but what I also wanted to say here is that uh there is nothing vertical getting included in Petra at all it's going to at best be included in Osaka which is the next upgrade after Petra uh going live next

year so yeah don't expect anything veral related to be going into Petra and that was done purposefully because uh most of the cevs and researchers even the ones working on veral do not believe that it is ready to go in as part of Petra and at the same time Petra is already getting pretty complicated I believe that inclusion lists actually I should have mentioned this before I believe inclusion lists isn't going to be in uh in Petra at this point and I don't know if pieras is either because now that we have um max EB 7251 and EIP 374 which is the account abstraction IP that I just talked about now that we have those two going in those are the headliners now like they they are the you know the the kind of things that people are going to be talking about there's a bunch of

other stuff going into Petra as well but because we have two Headliners now uh it if we add another one it just increases complexity and it means that the fork will probably come later than we would like I think if we have 7251 3074 and the other eips a lot of them which are already complete by the way like the eof eips are pretty much like uh you know a spec complete research complete it's just the the clients have to build out the functionality there I think and uh it's not from what I've seen it's not like a heavy lift um I think we could actually get this upgrade at the end of the year instead of next year but as I said I believe yesterday or the day before uh I don't think it really matters if we get it end of the year or

in q1 or something like that but we'll know as we get closer and closer when we'll get it but I think out of all of the IPS coming in Petra obviously I'm most hyped about Max EB I think 3074 is also a big unlock for users but I mean Max EB is one of the ones that been championing and I'm really glad that it's going in um because you guys remember on the live stream the den live stream I was there kind of like in front of all the C devs saying please you know please prioritize Max CB please and then people got louder and louder about it as time went on and uh you know it was really I'm really glad to see that that was prioritized and people saw the value in that so yeah I mean I'm not not trying to toot my own horn or anything

but like I think I played a little bit of a a little bit of a kind of role in getting that over the line there but 3074 has had many champions over the years I think the chief champion of 74 is like clients so kudos to him for keeping up uh you know championing that um and you know he he he must be very happy that 374 is going in there but yeah as I said back to the vericle stuff you can read the latest updates on this tweet I'll link it in the YouTube description below uh for you to do so there all right so just a quick shout out here there is another eth Staker ethereum solo staking or etherum staking survey I should say uh that has been posted here on on farcaster you should you should go check this out I'll link

it in the YouTube description below but it's basically a survey that should take you maybe like 10 to 15 minutes to fill out um and it's for all Stak is not just solo stakers so essentially if you're a solo Staker or staking with an LST or an LRT or however you're staking you should fill out this survey because it gives the E Staker community and then the wider Community once they publish the results a better look at what the current staking landscape looks like especially when it comes to solo and home stakers because it's really hard to poll solo and home stakers about anything uh and track them because it's really hard to track them on chain so essentially what you want to um do is have a survey go you know far and wide and have enough people fill it out that you can get some good data from so

definitely go fill this out I'll link it in the YouTube description below for you to do so all right so speaking of solo stakers there has been another airdrop that is coming to solo stakers this time from Omni Network so Omni is I believe a AVS that's going to be part of the IG layer ecosystem which I'll talk about in a sec actually I layer had an announcement with regards to this but I did want to shout out that they have a um they have an airdrop going on now for solo stakers but not only for solo stakers you can see in my screenshot who's eligible i l resters are eligible as well um but I will say that I believe from what people have told me the beacon chain solo Staker I guess criteria was done on the deposit address not on the withdrawal

address which I think is weird because there are a lot of people who would have deposited in um uh you know uh to their solo Val ators using an address that was like a throwaway address and may not have access to that address anymore which means that they wouldn't have access to this airdrop anymore so I think that any air drop stun to solo stakers should be done based on the withdrawal address uh or you know the fee recipient not based on the deposit address just because of that fact there and it's not hard to do that there are many lists that these projects can use now but it's good to see that this trend of air dropping to solo stakers is still continuing and I believe in omni's case it's they say here Beacon chain solo stakers so I believe that applies to pre-merge stakers because um uh because

I think that like the wording implies that and I think from the data I've seen people who uh solo Stak after the merge aren't eligible for this but yeah you can go check your eligibility I don't have the link hand handy but you can go to the Omni uh kind of um page and check your eligibility uh there to see if you've got an air drop and make sure you're on the right one because you have to actually kind of um connect your wallet and everything uh you can't just like paste in your wallet and and check your eligibility there so please make sure you're you're on the right one if you're not sure you can uh kind of DM me on Discord or DM the daily way Discord Channel or sorry write a message in the daway Discord Channel and they'll help you out with that

there all right so speaking of Igan lay avss they announced today six new avss that are going live alongside Igan da so you can see here that the six abss are alt layer brevis ZK uh which is a co-processor the E Oracle Network which is an ethereum native Oracle lrange uh which is a state committee Network witness chain a dpin coordination layer and exterior games which is a restake roll up here and there are there is information about all of these in the uh Twitter thread I'll link it in the YouTube description below but it's great to see more abss live uh kind of out of the gate here I will say that because this is so early still and because like there's no kind of slashing and there's no kind of reputation system in place or

anything like that if you are like an igen pod right now um sorry if you are running an igen pod right now uh maybe you should would uh only be kind of reaking with something like I da instead of these other ones right now until you learn more about them until you know more about them I don't really think there's any risk here there's no risk of slashing I don't think there's any risk of of your funds getting lost or anything like that uh but just maybe from like a reputational thing uh especially if you're like a you know a solo staking pool sorry a staking pool or something like that uh it it's going to be interesting to see how that all kind of plays out because as I've said I think before about the abss is that essentially the avss exist in a

Marketplace and that Marketplace is going to have a bunch of different metrics around it to rate each of the avss such as you know reputational score such as the uh kind of risk that you're taking on such as what you're actually reaking against as such as like the um the reputation of the team and the and the road map and the actual product like there's so many different metrics to kind of I guess judge these things on and we don't have them right now and as I said there's no slashing involved either so the risk doesn't really seem that high but me personally I wouldn't be kind of pointing towards anything but maybe Igan da right now just out an out of an abundance of caution but regardless of that you know that kind of um flag out of the way you can go check

out this thread from igen layer I'll link it in the YouTube description below for you to do so all right last up here we have an announcement out of a bunch of different companies actually so securitize Circle and black rock are the companies we have this announcement out of and securitized tweeted out saying Circle announced new smart contract functionality that would allow holders of the Black Rock USD institutional digital liquidity fund or build or Builder uh to transfer their shares to Circle for usdc so essentially enabling interoperability between black Rock's uh U build kind of um it's not a stable coin but this kind of a liquidity fund that they've got on ethereum L1 here and just making that interoperable with uh Circle usdc which is a pretty

big deal guys I mean you know circle usdc is obviously completely centralized it is not really a crypto thing it's like trafi thing on chain but it's still crypto native right like in in the sense that usdc powers a lot of the onchain crypto native economy specifically with in ethereum and l2s uh and black rock put their liquidity fund on ethereum L1 which makes it instantly interoperable with these uh these other tokens right with stuff like usdc and really anything uh because of the fact that everything exists on a you know an open standard like ethereum and that's the real unlock here and that's the real power for tokenization I think is that interoperability because for example

there is very little interoperability within the existing Financial system for things like this like there may be decent interoperability between uh Banks like if you're sending money to kind of like local between local banks or between local friends or something within the same country it may be okay depending on the country that you're in I know in Australia we have uh pay ID which is basically like instant um I don't know if it's instant it's usually not in for like the first time you pay someone um if it's like a big payment but for like smaller payments it's usually instant uh but like most countries around the world don't have that but that's really just like a payments thing and that's really like pig on a on uh sorry pig that's really lipstick on a pig because there's nothing really uh uh you know revolutionary happening in the

background there it's just that the banks have agreed to use this system and they're all got you know they've got these contracts in place whatever and they're all taking on different V variations of risk here and there uh whereas when you're using ethereum as an open standard there's none of that it's all inable by default it's all able to be uh uh it's all able to talk to each other by default because they're all just erc20 tokens here you know part of that open standard there and this really is like the Bedrock of what runs the whole internet already right those Open Standards you know Linux is absolutely massive most people don't even know what Linux is and yet it Powers pretty much like everything they do uh when they're doing digital stuff like even if you're using uh a Windows PC or or a Mac Mac OS

um or a Macbook or something like that uh you are still using Linux like all all the servers that you're accessing all of the you know the um you YouTube whatever else you're going to be accessing even if that's all you do it's all run on Linux architecture it's all run on Linux servers right uh and and and I think that most people don't realize that because it's just backend infrastructure and the same is true for something like ethereum like ethereum I think has has more awareness because of the fact that there's like monetary incentives tied to it obviously there's EP asset tied to it but for most people still going into let's say a couple decades from now they're not necessarily going to know what ethereum is or they're not going to know that ethereum is powering what they're using you know the financial products that they're

using they're just going to know that it's all inable it's all very fast it's all Global uh and it all works really really well and you know this is this goes back to something I think people have been writing and talking about for many years now around the fact that when the internet was built we didn't include a value transport layer as part of the internet right we didn't include a value trans uh transport protocol as part of the internet because we couldn't there was no way to do digital scarcity and there was no way to do to to fix kind of like the double spend problem and there was no way to do it in a decentralized way but then Bitcoin came along in 2008 or the white paper came along and then it went live in 2009 and people saw that well okay we can do value transfer in a

decentralized way and we can solve the double spend problem and now we do have value transport layers on uh on the internet essentially right ethereum Bitcoin other blockchains they're all value transport layers but really the the contention I think is between all the different layer ones is they're all fighting to be like the premere one uh whereas I think today there's really only Bitcoin and ethereum that exist as the premier value transport layers because uh I'm not just talking about like memec coin activity and stuff like that I'm talking about where people are actually transferring value transporting value and storing lots of value like ethereum's tvl is absolutely massive compared to every other ecosystem right now uh and then you have uh just storing eth on there so eth isn't included in that tvl but just like eth's entire

market cap then you have all the stable coins on there you have all the other tokens on there and then Bitcoin similar boat where you have like BTC be worth you know 1.3 trillion or whatever and then some Assets in the form of ordinals right now on there but not really much there just yet but uh yeah they all exist like that so yeah we do have these value transport protocols and that means that essentially everything that we improved with the internet for data we can now improve for Value transfer for money for for the financial system using chains like ethereum using a neutral kind of open standard here that we just didn't have when the internet was being built you know it would have been a different world if we had this when the internet was kind of like being adopted and being built in like the '90s and the

early 2000s um that would have been probably included in that you know Bitcoin may have just been you know the Bitcoin protocol not maybe it wasn't even called Bitcoin but it may have just been a uh uh kind of a layer as part of the internet stack it may have not been its own separate kind of network here and we you know we may have still had uh some form of kind of like uh I guess currency tied to it or some form of like money tied to it or something like that U but yeah it may have just been like a protocol as part of the the internet stack at large but it might have been difficult to do that because of the fact that you would basically need to uh I guess ensure that you had like miners on board or stakers on board somehow or

some way to do uh a decentralized money uh without uh you know economic incentives it would be very hard like I'm just thinking about this off the top of my head right now what that world would look like but we don't live in that world you know we live in reality we don't live in narrative land well some people live in narrative land but I like to live in reality um but yeah that's how I kind of think about all of this but yeah hopefully that kind of uh helps you guys conceptualize why stuff like this is so important why Circle and black rock working together is so important and why it actually fulfills the vision of really what ethereum is uh trying to be here but I think on that note 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