The Daily Gwei AMA Series #16 - 11th of December, 2022

Transcript

hello everyone and welcome to the 16th Daily gray AMA series for those of you who aren't aware I used to do these amas every couple of weeks and I haven't done one in about a year now so yeah this is the first one since then it's the 16th episode there is a playlist that you can check out that has the previous 15 if you would like to do that and previously I had run these through the Discord Channel where people would ask questions uh whether that be prior to the AMA or live on in the voice Channel and then I would answer those and record the AMA and upload it to YouTube but for going forward I'm going to be doing the amas every two weeks again but I'm just going to be collecting the questions in the AMA series channel in the Discord Channel and then answering them as I'm

doing today and uh there's no kind of time limit on on how long I go for with these amas just I read the questions I answer the questions and then we go from there but there is timestamps uh so you can check out the timestamps in the YouTube description below uh but yeah on that note I'm gonna get started with the first question for today so the first question comes from Tim Jansen who asks about the pros and cons of different execution clients and then they say you know they still have to do a deep dive into it myself for my own node so for those of you who who have been listening to the wreath full for quite a while you know about this concept of client diversity that we have on ethereum where there are multiple different clients that you can run to uh to occur to

constitute a full node so you can run like a prism on the consensus layer and you can run a Geth on the execution layer which are the two most popular ones right now or you could run prism and never mind or you could run Lighthouse and Geth there are all these combinations that you can do um and there are there are I think more than five on both the consensus layer and execution layer side there but Tim's asking about execution clients and the pros and cons between them so really uh there's uh four major ones there's Geth nevermind Basu and Aragon uh Aragon is based on guests architecture uh Aragon basically got started a couple of years ago with the intent of making it easier to run an archive node so I guess there's a pro of Aragon over something I guess is where get the Netherland and

Bay suit would would it would be hard or it will take longer to sync an archive node than it does with Aragon so there are things like that that can get considered pros of one client over another uh for and then for example Geth has been around the longest right it's been around since day one so it's considered the most reliable the most secure uh the most stable uh release of um of the ethereum execution client software uh but then there are there are newer ones as well I mean you you guys would have seen the other day the uh ref client from Paradigm the execution layer client that came out they're built it you know that's built in Rust so get his built in go um Aragon I believe is also built in go I'm not 100 sure on what nethermine's built in but usually they're built in

different languages same is true for the consensus layer side of things and that lets them do uh certain things that that lets them kind of perform better depending on what language they're written in but there's a trade-off there with something else that they're doing right uh and they did and then the execution clients may have different sync modes so maybe easier to sync one you know as a phone node rather than over the other whereas with uh as I said before there are ones like Aragon that are just targeting archive nodes and Target and they can still run a normal node with Aragon uh but they're targeting uh making it easier to run archive nodes and they've been pretty successful with that which is which is very cool there so if you want to check out more about the execution clients you can go to the ethereum.org website

they've got to run a node section it goes through more of the stuff uh there uh but generally yeah there's just there's basically trade-offs and and and and different clients uh Target different uh kind of um ways of running the the software running the ethereum spec uh and as I said like the perfect example is Aragon targeting an archive node GAF being more stable and secure never mind being an alternative I believe it's built in an alternative code base so because Aragon is derived from get I mean Aragon has been changed from the original Fork of Geth quite heavily actually uh but but still I mean it is derived from that uh but yeah hopefully that answers your question there Tim the more there are I guess like more technical differences between

them but I'm not going to go into the technical differences on on this AMA because it'll take me a while to do so and I probably need supporting a documentation here but uh I think on the execution uh client side of things those four that I mentioned are all pretty good but if you're going with the most reliable and stable Geth is probably that right now but as time goes on the rest of them catch up and honestly I run nevermind and it's been fine for me like I haven't had any issues with that I've I mean I've run all of them at one point or another but never mind is my go-to because I don't want to and I'm also running Geth as part of my rocketpool mini pool as well uh and that's going fine I mean never had any issues with Geth of course uh but Aragon and bass

who haven't run as as often but I've run them before and they seem to work fine as well all right so on to the next question that comes from bad artifacts who says can you further explain how one can run a full node without 32 eth what are the benefits to the network what is the difference in capability between a node with 32 Heath and a node without any eighth all right so I'll answer these in Parts because there's multiple questions here so the first question of you know how you can run a full node without 32e well the only thing you need 32 eth4 is to run a validator so I I think it's probably worth me breaking down the terminology here so there is a what is considered a full node and then there is a validator and I mean there are different types of full nodes

there's an archive node and then there's kind of a light client node but just for the sake of of explain of explanation here we'll go with full node and validator every validator needs to talk to a full node so as a solo Staker I need to run a full node which multiple validators can talk to so I can I can run one full node that 10 validators talk to you for example I don't need to run 10 full nodes that 10 validators talk to but those validators I can can only run a validator if I have 32 8 bonded to that basically by putting it in the deposit contract I spin out my validator and I'm able to validate on the network so and what does a validator do well a validator tests the blocks is part of sync committees it produces blocks and you earn a reward for doing

that whereas just running a full node on its own you don't earn a reward for doing that because you're not actually doing anything uh doing any work for the network so around the proof of work you're not actually doing any you know you're not mining right you're not hashing uh you're not producing blocks or anything like that in proof of mistake it's the same thing you're not attesting to blocks as a full node you're not uh part of sync committees you're not uh producing blocks uh you're basically just uh syncing the network keeping to the head of the chain uh and and basically providing uh another I guess copy of the ethereum network uh for the world so to speak so why do people do this like what are the benefits here to the network well there's benefits to the network in that the network can say okay well there is

well I mean not just the network But like everyone can say okay well there's 5 000 ethereum four nodes that means there's five thousand uh up-to-date Instinct copies of the ethereum network at any given time right so that's very valuable because I think at least my opinion is that one of the core tenants of decentralization is that we have a large number of people who hold the network and are sync to the network at any given time and that it's easy to sync to the network as well like it's easy to sync the full history of ethereum with with a full node and have guarantees that from Genesis you are sinking to the correct chain and uh and nothing has been kind of tampered with there other benefits for yourself uh include being able to use your full node as an RPC so for example uh when you use

metamaster default RPC is infuri now what is an RPC well an RPC is a a kind of service that you connect to that relays your transactions for you now obviously if you're if you're using a third-party service to relay your transactions for you they can potentially buy you from doing that or they can manipulate your transactions and and send it to the net work uh with you know uh basically as a transaction that you didn't approve of right uh or or you didn't or they could basically deny you service altogether so when you're using your own full node as your RPC which you can change in metamask for example you can point it to your own full node uh the only person who can stop you is you so you you're basically a fully self-sovereign ethereum user by doing that which I think is pretty

important I mean I do it myself because I don't want to Outsource my RPC duties to to inferior or any other centralized service out there so that's really really important and that goes back to what I was saying before is that you wouldn't be able to do this if it was really difficult to sync the ethereum network if it required like beefy you know serve as beefy data centers but it doesn't it just requires consumer Hardware I mean you can run a full node on a Raspberry Pi these days uh with an SSD connected to it so obviously very um uh very consumer friendly to to run a full node there and the benefit and the major benefit is being able to use it as your IPC as I said the major benefits of the network as a whole is being able to have those multiple cop copies available

and being able to see that it's available as well and then as I said as well you need to run a full node if you want to be a solo sticker you can't just you can't run your own validator on your own hardware and connect to another full node you have to run your own full node to do that then and the next question here was you know what is the difference in capability between a node with 32 Heath and a node without any eighth well I explained that just before where I said that uh to become a validator and to earn rewards you need 32 weeks you need every every validator needs a minimum of 32 each that's uh kind of bonded to it and then it can start by testing to blocks being part of sync committees and producing blocks and then you earn a reward for that and the

reward can vary obviously over time based on a number of different factors but you earn rewards for doing that whereas with a full node there is no eth requirement at all it's free to run you just have to run it on your own Hardware obviously needs to be online 24 7. so it's not totally free to run there is a cost of obviously having internet and the hardware cost and the power cost but they're very very minimal of course but you don't get get rewarded for that and really there is an element of altruism to running a full note as well to maintaining the health of the network too and making sure that you can spot anything dodgy going on on the network as well which is obviously very important for decentralization but but yeah I guess the main point here is that you do not need any or anything really

to run a full node you only need eighth to become a validator um and that's because it validators earn rewards it's like for example to choose an analogy here and proof of work you don't need any mining equipment to run a Bitcoin full node but if you want to mine on the Bitcoin Network you want to produce blocks then you need mining equipment to do that right so it does differ in proof of stake because it's not mining and you're not just producing blocks you're testing the blocks but the same Concepts uh still apply here so hopefully that answered your question uh bad artifacts all right one here from yash.eth who asks what tools do you use for analyzing crypto markets and what specifically do you look for so in terms of like the actual Market itself I mean I don't

really do much analysis on it uh at least not over the short to medium term I do look at the long term stuff but I mean there is a lot of noise there but I I use trading view I have a premium account there I I love just using trading view it has all the charts that I need has all the tools that I need as I said I'm not like someone who does charts or looks at short to medium term movements but I do like having the ability to look at longer term movements and longer term Trends and seeing different parts of the cycle and being able to reference things I I really find that valuable um but in terms of like broader market analysis I don't think there's actually like a like for me personally I don't really use tools what I use is and it

may be funny to say this I use kind of like a mixture of uh of social signals of just intuition of my own experience to come to I guess like relative certainty over what the market is doing at any given time time so for example right now obviously we're about a year into the bear Market um and and it's been a pretty brutal bear market and the prices are where they at but I look at that and I'm like okay well we're a year into the bear Market which means that pretty much everyone who wanted to sell has already sold anyone selling uh from from here on out is probably just like a Trader that's speculating that's trying to play some more moves or maybe it's someone that needs the money right now and they just sell because they're forced to sell so to speak right

um and then I look at things like well FTX collapsed and eth didn't go to new lows right so I look at that and I'm like okay well if he didn't go to new lows and one of the biggest exchanges collapsed that means that ethos or it seems like ether's already capitulated right and we already kind of set that bottom at 880. so there's that and then I look at uh on the reverse side in Bull markets uh last year I was looking okay well this for example when Elon Musk went on SNL and pumped up Doge and Doge was having like a stupid run I was like okay well this seems like it's close to like the top right now this is just absolutely crazy and of course was a few weeks later the market topped and it was a it was a pretty brutal top I mean

Heath went from 4400 to 1700 in a week like that's that's how brutal it was back then and then obviously we had that like uh I guess second pump uh towards the end of last year as well but I saw that and I was like okay well this doesn't seem very sustainable either because there's a lot of just hot air getting pumped up a lot of these old l1s getting popped up and it reminds me of my experience in 2017 when the same thing was happening um so as I said like I don't really use too many tools uh to to analyze the market it's just a lot of mixture of subjective social signals and experience and things like that but in terms of like going Beyond and using tools to analyze not just the market but like the growth of ethereum for example the

growth of l2s there's plenty of tools out that you can use these days I mean there's L2 beats there's Doon analytics uh there's nanson um there is um I think it's transaction info I think it's called that shows you a bunch of stuff there there's crypto fees dot info and all the other sites that David Michal has built as part of crypto fees I info you can see at the top of that website there's a bunch of other sites he's built there um and yeah those are those are kind of like my go-to eat the scan of course but doing analytics has a lot of cool dashboards that you can look at to measure these things um and then looking at things like developer activity on GitHub and the projects that are launching and there there obviously is like very uh they're they're they're I guess like hard

signals and soft signals the hard signals are things you can put data like hard data to soft signals are more subjective and based on your own experience but yeah hopefully that answers your question on the market side but also on I guess like the fundamentals side as well all right Destroyer asks are you going to eat Denver if so let's organize a deadly way meet up uh yes I actually just booked my hotel today so I booked my flight yesterday my hotel today so I will be at East Denver I will be in Denver from February 27th to March 6th the conference is March 2nd uh sorry I think it's second third fourth and fifth or third fourth and fifth one of those two um but and then there'll be like side events and stuff around that uh

well I'll look into organizing a daily wear Meetup if someone actually lives in Denver and knows a good place that we could where we could do a meet up please reach out to me because obviously I don't live there I don't know the lay of the land there but yeah I'm hoping to see a lot of you there ethanva is the second biggest ethereum Conference of the year I think the only one bigger is Defcon so if you are planning to go to Denver you have put your application in hopefully I'll see you there but I think the venue capacity this year is 50 000. so I mean I'll be impressed if we can get 50 000 people to read Denver in a bear market right I don't know if we're going to be able to get to anywhere close to that and look the venue

capacity is 50 000 for the whole venue I don't know if them has booked out the entire venue it's quite a large large venue um but yeah hopefully everyone gets is able to come and even if you aren't able to go to Ethan but if you live in the US and it's just a short flight for you you can probably just come anyway and hang around at the side events there's always other stuff happening but yeah hopefully I get to um to see some of you there uh and Destroy has a second question where they say um this might be harder to answer but are there any studies yet to show how L1 gas usage will look over time as l2s develop I don't think there's been any kind of studies per se there's more of like there's a do not leaks dashboard that tracks this and

there are other dashboards that track this the other day I saw that l2s are taking up about five percent of uh layer one gas right now and that's been growing obviously over time but the problem is is that once erp4844 gets implemented that is going to collapse so let's just say 4844 which is Proto dank shining gets implemented Q3 Q4 next year still quite a while away that could be like nine to 12 months until we get it so but just looking at it like that and considering what 4844 is going to do for l2s we could see the L2 gas which you'd go up to like I don't know 15 20 the next uh nine to 12 months but then once 4844 gets implemented the gas usage just dumps like by 90 plus percent so it could go back to basically nothing of L1

gas fees so it's very very hard to actually do any studies on this and to actually project things out I think we're going to need to wait until 4844 is live and then we can get a better idea of the way things are going but I've said this on the rear fuel I don't actually think that it matters too much because there's always going to be people using L1 L1 is still going to be the most decentralized and secure place uh for your money for the foreseeable future these l2s the majority of them or pretty much all of them except one I believe have centralized controls in place and they're going to take a while to get off those centralized controls and and even still they are much newer than ethereum layer one so there is a higher chance even if it's a small chance there's still a higher chance of

some kind of bug happening as well on these on these Networks or maybe you have assets on layer one and you're a whale and you don't care about paying the fees there's that as well so I think there is going to be a dynamic where layer one gas fees are still just dominated by layer one things uh layers will grow over time but then with 4844 it's going to collapse the cost down and then we'll probably take a little bit a little while to fill that block space up again and and see kind of what the dynamic is like but yeah it's very very hard to project out at this point in time all right so uh next question here comes from oh okay it comes from uh yeah rocket uh who says I do have a question kind of related to bad artifacts question with the future implementation

of DVT is there any way for a group of people to combine their eighth to reach 32 requirement to become a validator and then share the rewards proportionately to each person's stake so let's say eight people each put four Ethan to a multi-sig or something and then that one validator split across each eight people's machines thinking it through I see it as a possibility but I really have no clue it would allow people with less than 32 to participate in validation as well as help decentralization so I I mean in theory it's possible but I guess like you ultimately you're at the mercy of um the multi-sig right because if you put this into a multi-sig then and depending what the multi-cig is so for example if you have like eight people putting in uh four eighth each and then the multi-seek is like a five of eight

well five of eight people could collude to steal the other three people's money for example right so it wouldn't really be like trustless staking you still have to trust but in theory this should work what you've described here like uh I I mean I don't see a reason why it shouldn't um because you'd just be basically having the multi-controller validator and then you can use DVT to split the validated Keys um amongst people but the multi-sig is the withdrawal key so to speak so the Odyssey controls what you could like who can withdraw from my understanding so yeah you mean it may just fall back to the multi-seekers being the ultimate source of security there from my understanding all right so uh MK Cole hopefully I said that right asks two questions first

question is what dashboards do you look at on a fairly regular basis I would say the ones that I look at really regularly are well these days actually I look at the Mev watch dot info dashboard because I like monitoring and seeing those um of compliant blocks come down over time and seeing how the real layout I guess uh relayer ecosystem develops over time and changes over time so I'm looking at that one on a very regular basis I look at cryptofees.info very regularly I look at uh the L2 dashboard so the ones on doing analytics is a specific one that I look at I can I don't have it handy on with me right now but if you message me on Discord I can link it to you and I look at L2 beats as well um so I guess like those are the major

ones I look at on on a regular basis and I would say probably like one to two day basis uh but the funny thing about like the dashboards as well is that they can be very noisy at times and it can be hard to especially on the shorter time frames be hard to filter through that noise because on the shorter time frames say for example it looks like there's a lot of activity happening on this certain project but in reality that to have a liquidity mining program going on they just came out so they have a lot of Buzz and there's like a few weeks worth of activity to go off well that that's no indication of what things are going to look like in the future so you always have to at least for me I always like looking at dashboards that give me a

longer term Outlook rather than a shorter term one so they can go back and look at like three to six months worth of data instead of like one to two weeks worth because of all that potential noise that could be included there but yeah those are the main ones that I look at on a regular basis and then second question is what do you think will be the next killer app or what do you think will drive crypto to a billion users you know it's kind of hard to know right like I don't think anyone picked well I don't think most people picked the nfts would be as big as they were last year or even like this year they're still pretty big right because I remember I was actually speaking to my old boss at set protocol when I was working there I distinctly remember this conversation I

was at the set office uh in San Francisco the first office that they were in um and I think it was what was the date maybe maybe it was August 2019 it was definitely 29th like late 2019 and we're talking about okay what's going to bring the bull market back right because it was still the bear market and I was saying well look I think D5 is going to be a big deal um and then and then we're talking about how icos were a thing in 2017 and people didn't see the Ico boom happening then I was like okay well you know I think D5 is going to be a big deal and then because we're working like I mean separatical as a defrost protocol we all already bought into the defy Mission uh all of us are like oh yeah yeah but that's too obvious right like Defy is

like super obvious uh we already know what's going to going to be big uh what's something that no one sees coming and I don't remember anyone actually bringing up nfts at that point which was kind of crazy when you think about it because nfts were still around back then but they were like I mean they were basically non-existent like no literally no one was really paying attention to nfts there were some Pockets here and there but they were regarded as like the weird kids at that high school that just sit in the corner doing their own thing no one took it seriously and then I guess fast forward like a yeah we had D5 summer so I was right on the D5 thing but we were trying to look up things that were unsurprising and they fired for me honestly wasn't surprising that if I took off like it did but yeah we

had defy summer but then we had nfts and that just blew everyone out of the water no one saw that coming and it led to a lot of activity on uh on on ethereum for for the majority of last year really um so when when kind of like thinking about it like that and taking that into that into account I don't think we're going to be able to predict what's going to be the next big thing going forward I think that the existing use cases that we have are just going to keep getting bigger D5 nfts the web 3 stuff is definitely going to keep going I believe like the centralized social media and then I think that there's going to be use cases that come to light because of the extra scale that we're getting with layer twos that are going to blow people away that are going

to actually catch a lot of people by surprise and basically invent new ways of doing things that we couldn't even possibly think of and I I'll stop my head right now I can't even begin to imagine what that's going to look like but in terms of saying that scales to billions of users that's actually quite hard there's actually not that many things that scale to billions of users in terms of apps there's a very there's only a handful of apps uh in the web 2 world that have a billion plus users and they're the social media apps so can we create a decentralized version of that that gets a billion users I mean sure we can't we'll that happen who knows right is their product Market fit but at that scale for a decentral live social media I don't know honestly I think that obviously like D5 has a product Market

feed of pretty much or has a total adjustable Market of pretty much everyone on the planet I think that money money is a use case as well right has has that adjustable Market as well obviously but outside of that it's hard to to see what would drive a billion plus users in in crypto uh so we'll have to wait and see how uh how that plays out I don't know hopefully that answers the question even though I don't have a really great answer for I don't think anyone does to be honest um but yeah I'm curious to see what the next big use case or killer app is as well all right next question comes from space bucks who says what is the landscape of L2 or ZK specific Hardware looking like and how do you see these playing out with decentralization decentralizing the various l2s out there so there is one

company that is working on this right now that I'm aware of and I'm aware of them because I'm an investor in them just as a disclosure there called ingonyama they're working on uh Asics for uh proving ZK related things right and I don't think they're the only company working on this I believe there may be one or two others but as far as the ones that I know it's ingonyama right now and I think I think that they're going to be very very important to decentralizing out the sequencing and the proving on um on these ZK uh layer twos because the thing with layer twos and this goes for both optimistic Roll-Ups and ZK Roll-Ups is that they have a kind of one of n trust assumption where you only have to trust this one honest uh I guess like sequencer or validator part of the L2 Network

um uh uh to basically know that the chain is up operating as it should be whereas in ethereum there's not a one of n trust assumption you have to basically assume that the majority of the network is uh is coming to consensus on the same stuff he's verifying the same stuff to uh to trust that that is the source of truth that is the real ethereum right um so so that's like a mini of n so so to speak whereas um l2s is a one of N and the and the the thing is though is that there's a drawback here where this it's one of n trust assumption but one of n isn't really great for uh decentralization and isn't really great for uh scale of scaling and for getting those proving times down so that uh sorry not decentralization it isn't good for censorship resistance and the reason

that's the case is because say you only have one sequencer so you've only got one uh uh I guess like sequencer processing transactions on Layer Two what do you think that means well that means that that sequencer can refuse to process your transaction because there's only one of them they can censor you but if you have 10 sequences well I mean you only need to trust that one of them doesn't send to you because you'll get your transaction included with one of them right um whereas on uh I mean and it's it's it plays out the same way on ethereum with regards to censorship where there's not just one validator on the ethereum chain that processes all transactions There is almost 500 000 of them and then if you look at the you know who they're Outsourcing their block building to you

look at the relayers and you can see right now that I think it's 65 ish of all blocks on ethereum uh of compliant well that means that 35 aren't and it will take you less than five minutes to get your uh tornado crash transaction in still because it because those other validators will include them so that's why we say ethereum is censorship resistant um whereas on these l2s on optimism and arbitrine for example right now there's only one sequencer so they could censor you if they wanted to on the L2 now does that mean they can steal your money or prevent you from exiting the L2 no you can exit the L2 via L1 you can do what's called an escape hatch on these l2s that let you pull your funds out of the L2 via L1 uh but yeah I mean that it sucked

to get censored on on the L2 because obviously you're trying to get your transactions in and you're being blocked from doing so so that's why we need multiple sequences on on that front uh and the re the way you get multiple sequences and more efficient sequencing more efficient proving is with these uh I guess like specific Hardware these Asics for uh proving and as I said ingonyama is the one company I'm aware of but I'm sure there's others out there and I think it's going to be a really big space going forward all right next question here comes from crypto Spanglish who says I heard you bought a new PC for solid stacking can you please detail what PC components one needs in order to get started with solo staking and where to order it from thank you so I go overboard when I build my

solo staking PCS like literally the one that I have ordered I don't have it yet I'm going to be building it hopefully this week but the parts that I've ordered for is total Overkill you don't need that and the reason I do that is because one I mean I like to Future proof for it for for for quite a while two I like to just build PCS generally and I just find it really fun as a hobby I built PC since I was like 13 years old so it's always been a passion uh for me um and it's just like a personal preference thing but the thing is is that you can run a full node and validators on a Raspberry Pi or on a rock 5B board from redaxa that's recently come out and those things with with an SSD I think it's like 500 US

Dollars it would cost you or something to do that so the app front cost is very small obviously very much smaller than it is for a mining setup on on proof of work and in terms of where you can get these components from well obviously it's going to vary based on where you live in Australia PC case gear is the most popular place to buy PC parts online and there's a bunch of other stores as well but I normally go with PC case gear Amazon is really great for PC parts too but in terms of like the Raspberry Pi's and The Rock 5B board uh they can be had from specialized retailers online you can just Google this but generally yeah I mean there I mean depending where you are in the world you'll have your own retailer that you can go to and that's and that's

where you can Source those parts from but in terms of I guess like getting started with solo stacking on the hardware side as I said you only need like a low powered kind of Raspberry Pi a rock 5B board but if you want to go to this like a normal PC you can have like a nuk Which Intel builds a lot of these nox which is like a small little mini PC that you can buy and you can add extra Ram to it and extra storage to it if you want or you you can build like one of those mini ITX builds so it's like small PCS like really really tiny and then just attach an SSD to it as I said you don't need beefy uh hardware for this you can buy like a standard motherboard standard CPU like an i5 or something uh

or a ryzen 5 you don't need the top of the range stuff SSD you would want to have like a two terabyte nvme SSD I usually use Samsung ones because they've been the most reliable for me I've had other ones in the past I don't want a bad math any Brands yeah but I've had ones that have failed before on me and it really sucks when it fails obviously uh so yeah I don't I don't um I really just use Samsung ssds these days uh the the nvme ones not the not the the normal ones just the nvme ones are plugged into the motherboard or the pcie slot you can get adapters for it uh and then power supply I mean you don't need a beefy power supply to run these things like 500 or 600 watts but what I actually have and I've gone above and beyond to

have is a backup power supply so basically it's called a UPS and unintrouble uninterruptable power supply it gives you it's basically a big battery that you connect your Hardware to and then if your power goes off it the battery kicks in and keeps your Hardware online the reason I've done this is twofold obviously I want to keep my validators online but going offline is you know the penalty's not big for going offline so it doesn't matter too much um but the the the bigger reason is that if your computer suddenly shuts off it can corrupt your full node which means you'd have to resync it again and that could send you offline for two to three days and then obviously the um the pen the the offline penalty starts adding up then especially if you've got a lot of validators uh so you don't want to have

any corruption happening on the on the on the database side of your full node and that's another major reason why I've I've done that there but yeah I mean they work really well I I bought mine off eBay um but you can get them from like pretty much anywhere uh but it basically is like a battery that has um has connections at the back that you can plug your PC into so I've got my PC plugged into that I've got my internet box plug into that as well and my sorry my internet I mean in Australia we have What's called the NBN and the one I'm on that's like a little black box that can that um that provides the Internet it's like a it's not a modem so to speak it's like a connection box they called I can't remember exactly what they call it

then I've got my modem router set up uh that I connected to the the intra uninterruptable power supply as well to make sure that stays online uh and then I also have uh in case like my internet goes offline I have a 5G backup but honestly like hey that's like probably going a bit too the problem with the 5G backups is that you don't get much data with it and the and staking on ethereum is pretty data hungry or bandwidth hungry so I wouldn't like to have that going for too long because then you have like really big data costs if you go over your limit or you get like throttled and then it's not doesn't really work anyway so that's my kind of step and that's that's a solid sticker as a home setup you can do solo staking on um on the cloud but obviously

that's more centralizing because you're trusting someone else's hardware and software uh to run that thing for you but you do get the added benefit of I guess like not having to worry about things like the the ups and backup internet and stuff like that but as I said going offline is not very punishing at all it's actually very forgiving so if I'll put it to you this way if you're offline for a month and then online for a month your net rewards would basically be zero uh your net block rewards would be zero so you don't lose anything and you don't make anything um so yeah it's very very forgiving but that's only if you're offline like on your own if if um under sorry if 33 of the network is offline as well as you are then something called the quadratic

inactivity leak kicks in and the offline penalties become much greater but I mean the chances of that happening are quite slim and I mean it's quite slim if uh I guess like you're solo staking um but like it can be larger if you're a part of uh LSD liquid sticking derivative pool um and that or if you're part of or if you're kind of like staking on AWS for example and AWS goes down and takes all these other validators down with them it can kick in more there but yeah hopefully that answers your question uh crypto Spanglish all right uh I don't know if this is a serious question or not but I'll answer it anyway crypto decrypted uh dot eighth said when token I've said many times on the refuel uh and in the Discord channel that there is never going to be a daily

grade token and I mean I don't as I said I think this is more of a joke question but I feel like it's worth reiterating that and the reason for that is simply that I don't think there's any need for a token like what would a token even do I mean I don't want to make a dow out of the daily way I don't want to uh do any liquidity mining or make a token that does profit I mean I don't make any money from dailybur anyway so there wouldn't be any profit to share right um so yeah there's never going to be a token for it uh and I honestly think that uh most it's funny because I think that like people started asking that more when banklist did a token but bankless as a I guess business or as a as a community is much larger than daily

wear has a much larger scope I should say and they actually do have a bank list down that the token is tied to and they vote on things and they do all sorts of stuff and they have revenue streams obviously so it's very very different so yeah no no token for for dailyway all right so uh Mike uh Nathan's on here referenced his question from uh back up here which was asked on the 28th of June this year so yeah quite a little bit of an older question here but he said to answer to answer it so I'll just read out the question so he asks hey uh you mentioned all the projects you that you're invested in really Chris curious if you have insight into what's usually the process for a project to make it in the web 3 space like if you have a

really great idea and are actively building the project how does it get traction funding Etc in the space I find that if the idea is pretty complex most people won't bother too much trying to understand it while all sorts of ponzis have catchy titles that are highly memeable so I mean it all just comes back to what ice product Market fit right like that's the ultimate kind of thing that you're looking for as a startup whether it's in crypto or otherwise you're looking for product Market fit and what that means is basically you're looking for people that actually want to use your product so it actually fits into the market and is and can become a sustainable business so what are some of the examples of these most successful sustainable uh projects on ethereum today well I think that one example is uni swap right uni

swap is is incredibly successful it's sustainable it works people love it people use it it has product Market fit compounds are there maker like all these old OG DFI protocols still kicking stuff product Market fit layer twos definitely have product Market fit right because they're lowering fees for end users they have their own ecosystems on there they have a lot of people on there and it's growing nfts seem to have product Market fit as well I mean that's debatable depending who you talk to but I do I think they have a product Market fit things like ens for example have it so yeah those are just some examples of things that have it right now so how do they get there well they offered a product that people actually wanted to use so in unisop's case people have always wanted to trade tokens I mean

they were just doing it on centralized exchanges so unisoft came along and said hey you can do this on chain and we have this new thing called an amm that allows you to provide liquidity and that anyone can provide liquidity which means that you can trade the long tail of assets and that's what people love doing they love just trading all these assets trading in and out of them doing it on chain and doing it self-custodially doing it uh within like one ethereum block no need to wait to deposit your funds for centralized exchange and then wait for confirmations and then hopefully you can withdraw your funds after you're done with the trade right uh so that was an obvious thing there ens I mean they provided a product of people wanting to tie a uh I guess like a human readable name to their ethereum

address so that was uh to me that's like a very obvious thing and just copying the the internet with IPS and and domain names right so those things themselves I think that they were I mean I'm not going to say that well got guaranteed to succeed but they had better chances than other things that may be considered more of a moon shot more of something that's not based on uh something that you can point to having like just natural demand so in terms of the projects you mentioned like ponzis right for example there have been a lot of ponzis and a lot of things that just I guess uh spin up they have liquidity mining programs and they seem like they have product Market fit but in reality they don't and a lot of the time these products actually just look like the existing products and the reason why the existing

products especially the finance related ones uh keep kicking is because when it comes to defy you're going to be more likely to use long term the protocols that have been around for a long time that have legitimate teams behind them that are more secure than the newer ones just by virtue of not wanting to lose your money right that's a big factor for a lot of people and as we've seen this year it's quite easy to lose your money on in crypto unfortunately so so there's that uh but in terms of like the process to get there the process to get up to there I mean it's it's literally like any business you need to work really really hard you need to be very nimble in your strategy you can't just be married to an idea or married to a strategy as part of your project you

have to be able to Pivot when the time is right you have to be able to seize the opportunities when the time is right you have to get over things like sun cost fallacy let's say You're Building something and you think it's awesome and you build it for six months and then you launch it and no one's using it and you and you kind of think to yourself well how do I get people to use this and you keep trying to get people to use it you keep spending money on it and no one's using it as a team you need to basically say well okay this doesn't seem to be working let's pivot to something else or let's try something else and not fall into a sunk cost fallacy where you're like okay well I've spent like a year building this thing out I can't just

abandon it now no I mean you you kind of need to if it hasn't been working out for you if you're getting no traction um then you you sometimes really do need to abandon the uh the idea altogether and go somewhere else and do something else and then maybe you find product Market fit uh next time there so there's I mean I could go on for a long time about this but in the interest of just kind of keeping it higher level here uh it's not easy um and the thing is is that 90 or more than 90 of businesses in the non-crypto world fail within like three or five years I believe the stat is in crypto the value rate is a lot higher because it's it's a much younger ecosystem but the successes are really big right like unisop is a huge success but there are a

long tail of other amms that just haven't really worked out they've tried to innovate they've tried to do things differently but because liquidity begets liquidity and it's easily and liquidity can easily kind of I guess like monopolize within one pool or or a set of kind of pools under the same protocol it becomes hard to compete in that Arena lending markets we've seen a lot of them kind of blow up or have bad debt associated with them or get gamed things like that so yeah trust and safety when it comes to D5 nfts is a whole another ball game because you can split nfts up into maybe two broad categories of uh infrastructure and the nfts themselves but then the nfts themselves can be can be split up into like many many different categories you have gaming nfts you have pfps uh you

have pull-ups right which are nfts you have NF you have ANS addresses which are nfts um infrastructure things like immutable X right things like openc and and looks rare and other marketplaces I would say that the marketplaces have product Market fit like obviously um of those open C uh uni swaps nft integration um uh there's a few up and comers like blur looks red yeah I haven't looked at looks red lately but doesn't seem to be doing too well had that initial fan fan has kind of petered out there uh and in terms of the nfts themselves there's only a handful that have had lasting impact so far that crypto punks and apes and uh I guess like uh a few others out there I don't mean I don't pay much attention to tease the the pfp nfts with nfts themselves but that's even harder

because like a lot of them are just either things that are just flashing the pan like um fads or rug pools or scams right so yeah it depends on which part of the industry you're looking at but generally building a sustainable business is hard building something that has long-term success is really really hard and what I've seen work is basically just things that seem like obvious that they have product Market fit because as I said with unisop you know that people try like to trade tokens uh before you build uni stop right that's why Universal was built because Hayden Adams saw hey like people love trading tokens what if we could do this on chain what if we could use a and amm to do it and make it more streamlined for users what if you could do it for the long tail of assets ens

came to be because I mean it's in their name right they looked at DNS the domain name system and they said hey like the internet was only able to get popular because we invented the DNS system which allowed people to map IP addresses to human readable names why don't we do this for ethereum addresses so it's derived from an existing idea that already has product Market fit outside of crypto and it's brought into crypto like that so yeah uh hopefully that answers your question there uh moving on to the next one here from I think this is what this one's definitely a joke question here from uh I think uh Jean qi9 I haven't said that right sorry my pronunciation is terrible they they ask is it true that Australia is full of giant spiders yes I mean it's very true Unfortunately they are

surrounding my house every time I go outside of my house I have to carry a Shotgun with me to defend myself just go into my mailbox is a mission right it's just it's really scary they're huge right and I'm joking of course there's no giant spiders I mean there are big spiders but like not like giant I mean probably like big like that they can grow too but the thing about the spiders is that like I live in the suburbs I mean you still see spiders but they're not like the ones you see out in the outback which is the massive the Huntsman and things like that like you don't you don't really see those in Suburbia too often um and spiders love just like dark places so you're not really going to see them in your home too much uh like inside your actual home you might you

know if you're going to the house you're going to see them if you go in your backyard or garage you might might see them but inside the actual house I mean I rarely see them the ones that I see in the house most often are what's called a daddy long legs and they're the most harmless spiders you can see like they literally like um I guess like a light brown color and you just randomly spot them on the wall and you look at it and you just like you just leave it I don't even bother killing it because it can't do anything right and I'm not I'm not personally freaked out by spiders but yeah there are no like giant spiders everywhere but if you go on the Outback I mean there are definitely Outback is um our term for like rural Australia there is definitely a lot more Wildlife

out there uh and a lot more of these kind of like spiders and other poisonous Wildlife but even around me where I live in in in in the suburb I mean there are other Wildlife here there's plenty of birds like plenty of birds where I am there's uh there's possums as well um uh there's there's foxes there's there's all kinds of wildlife but I mean you don't really see them too much and I mean possums are nocturnal sometimes I'll hear them at night they're actually possums are actually quite scary because when they're running along the fence they make so much bloody noise and because it's dark you actually don't know where they are so sometimes I'll like be at the front of my house and it's dark block and I'll hear just like uh something coming along the fence I'm like what the [ __ ] and then I'll quickly

remember okay that's a possum and it just sounds like uh you're in a horror movie and there's something just coming at you but possums are tiny like really tiny um and then they're gonna they'll leave you alone they're not gonna attack you or anything like that but they are nocturnal so you're only ever going to see them when it's dark so so yeah but hopefully that answers uh your question there all right so next one from Xerox Cassie who says uh my question an ethereum node which is just running and not used by anybody locally for transactions is it still helpful for the network in any way I know it's a bit similar to the questions above but I cannot figure out exactly how it would help secure the blockchain I'm thinking of setting up a node at a location where there is a fast

access internet connection but no ethereum users would it make sense so your full node yourself if you're only using it for your own purposes and you're not actually opening it up for other people to use as like an RPC then no it's not going to be helpful from the network so to speak uh like from a from I guess like an objective or a technical point of view but what it is helpful with it's helpful from a social point of view as I mentioned before where people can see that there's like thousands of nodes on the network that can have relative confidence that the network is uh decentralized because of that and there is you know thousands of different copies of the chain at any given time but the number one way it's very helpful for people or for yourself is to use it as an RPC to really your transaction

questions but yeah I did answer this in the previous question um that you probably heard but but if you haven't you there's a time stamp for it you can go check that one out uh but yeah I'll leave that at that because I already did answer it I think in the previous questions all right so I want to hear from who says on a very basic level a system where you lock money to earn future Revenue such as staking yields but cannot withdraw it until some point in the future kind of sounds like a scam if you try to explain like I'm five to an outsider why was a design like this in the first place I understand this has been discussed a million times and there are liquid staking derivatives as workarounds and promise solutions for withdrawals but without going into all the specific details this just seems

fishy on a higher level doesn't it look I don't think it seems fishy and I don't think it's scammy but obviously if you're coming into this ecosystem as like a brand new user and someone tells you hey you can stake but you can't withdraw I mean it may sound a little bit dodgy to them especially because there are a lot of crypto scams and ponzis out there uh that that work like this and you can't actually withdraw right so I understand that but the reason it was designed like this is simply because we didn't want to enable withdrawals for safety reasons right like when the big enchant was first launched it was launched very based it launches a very basic chain on December 1st 2020 where it was just coming to consensus on itself then we did the merge and we merged the two chains

together we didn't want to enable withdrawals then because we didn't want to add more complexity to the merge than was already there so the merge was by far the most complex upgraded theorem has ever done and if we added withdrawals into that it would have complicated things even more and there would have been just one more thing that could have gone wrong so the promise was made that or I guess like the the promise and the social consensus among the community was that the first upgrade after the merge would include withdrawals and that's happening withdrawals isolated for the Shanghai upgrade which is coming in March April of next year not too long away now and then once they're in they're in right uh so I mean I understand that there are people are concerned about this I understand there's a lot of fun around this as well but I think the fud is is

silly because as I've said like there's been that kind of understanding within the community for a long time that the withdrawals wouldn't be enabled until after the merge and on top of that it is a voluntary thing you're not forced to stake and if you want instant liquidity on your stake you can go through an LSD of which there are many now but you are not forced to send your eighth into the deposit contract lock it up uh and then not be able to withdraw until withdrawals are enabled um and just holding eth on you know on your own um in your wallet uh you're not locked into anything there so I think the fun around it is silly because of that because it's a voluntary process uh so hopefully that answers your question but yeah I mean this has been discussed to death I think and I think you've

probably seen all the the different discussions on this as well um but but yeah that's the reason it was done it was really just done for Safety and Security reasons at the end of the day all right want to hear from grimy gray who says I'm interested in helping with network decentralization as someone with just a little bit of capital I can't really afford to participate in staking site of ethereum aside from lsds but that experience hardly resembles what it takes to set up something like a solo staking operation I just want to become a little more knowledgeable so if that if I do get to a point of being able to spin up a rocker full mini pool or do some solo staking I have experience poking around under the hood I saw what people have mentioned about running a node and we'll be starting there just

got a Broadview pi and looking forward to tinkering so yeah for sure the first thing you can be doing is running an ethereum full node but I think there is a misconception within crypto that you have to do something technical to add to this decentralization of the network you actually don't so the when you really break it down what's keeping these networks decentralized is the social layer and the more distributed the more varied the more geographically diverse the more I guess like culturally diverse the social layer is the more decentralized it is so what can you do to help with that well you can produce educational materials right you can make educational videos or podcasts or blog posts you can participate in the ethereum governance process you can go

to the E3 search forum and participate in in the posts on there and give your feedback on that you can help people in the daily grade Discord Channel when they're asking questions uh you can obviously uh keep stacking Eve to run your own validator eventually whether that be as a mini pool or as a solo validator right so there are many different things you can be doing and you can I mean you can just be doing stuff in real life as well telling your friends and family about ethereum and and crypto and maybe getting them into it so it's not just a strictly technical thing that you have to be doing you can do a lot of stuff on the social side of things as well because as I've talked about on the refill a lot of times before the social layer is the is what

makes the blockchain decentralized the social layer is the ultimate last line of defense and the socialite is what sets the culture of a chain that's why you see on bitcoin the culture is dominated by Bitcoin maximalists they they basically are the loudest uh kind of like um people in that ecosystem and it leads to a very toxic ecosystem whereas in ethereum it's the I would say that the dominant culture is one of building and looking towards the future and that's why ethereum is such a builder-centric community and we have so many things that people build all the time uh and we keep building on not just a core protocol but on the app layout on on l2s all that good stuff there so hopefully that answers your question about how you can help with network decentralization it's not just the technical side of it it also it is also

the social side of things as well all right one here from Nextech who asks can you explain Fuel and sway like I'm five I generally consider myself pretty Advanced but I just don't understand how that layer 2 works it was the bankless Alpha League recently for modular blockchains so I wouldn't say I'm an expert on this either so I apologies here but fuel is a is another implementation of a layer two as far as I know they are trying to use uh utxo instead of account based model uh for their for their chain here or for their layer 2 here which they Pro they propose gives a bunch of benefits which I'm sure they explain on the bank list podcast I haven't actually um listened to that yet and sway is their native language for the fuel layer too just like how you

have solidity with uh ethereum layer one and with other evm chains and you have Cairo on stock net you have sway for for fuel and and then you also have like um Noir for Aztec as well which is another layer too so yeah I hope sorry I can't go into more depth about that uh I I'm not as uh as versed as I should be in that uh but yeah that's like a high level of what those two things are all right one here from Adam NK uh dot eath who says if hypothetically a decentralized algo stablecoin won't be possible to create at all ever then what is the best way going forward it feels like quite a big problem given how important stable coins are with risk of centralization Slash government bans slash cbdc's Etc 100 so a 100 and on team with DK proof privacy plus proof of

reserves and liabilities type of thing maybe maybe an algro stable coin could be integrated to the ethereum protocol somehow thus giving it more of a trust factor and won't be easily depegged but that might be a [ __ ] show I don't know haven't thought it through all right so I I've talked about stable coins on the refuel before I I've said that I don't believe that we can ever create a truly decentralized stable coin that is pegged to a fiat currency right I just don't think that's gonna happen and I do think the end state is eth being the stable coin so to speak or being the money of the ethereum ecosystem and that it does happen in small parts like the nft ecosystem is is definitely using money uh using ether's money and people using either's money across the ecosystem generally but in

terms of something that is stable so to speak um when you talk about stable coins like it's funny because a stable coin doesn't necessarily have to be pegged to a fiat currency and obviously the most popular ones are pegged US dollars but that just means it's stable to US Dollars it doesn't mean that it's stable to everything and this goes into the concept of stability so for example the US dollar use loses purchasing power over time by virtue of inflation and by virtue of other things just going up in price against it so you could say that the US dollar has lost a lot of purchasing power against each because eighth has gone up a lot against that over it's in its lifetime Right started at 30 cents right 30 us cents and now he's at 12 or 1300 whatever it is right now 300 US dollars so when thinking

about stability that's how I think about it but no I don't think that there is a possibility to create a decentralized a I'll go stable coin um in in terms of being able to kind of like self-balance it and and and make it work with that clutter or anything like that I just don't think that's possible and that goes to your second kind of Point here where you know baking something into the ethereum core protocol I mean we already saw that play out with Terra uh with with the USD stable coin it doesn't work the only way a decentralized stablecoin uh can work but work in terms of I guess like work but not at scale is something like the original dice a single collateral die uh or rye uh but those things can't scale very well because they have to use only truly decentralized collateral which is

really just eth on on ethereum and eth has a you know a ceiling on how much eighth will actually go into that contract to General write that stable coin right so yeah it's it's quite a hard problem when you think about it like that and I don't think we're going to get an algo stable coin that ever works all right so a question or two questions here from Mi first question I know this is a simple back to the basis kind of question but can you discuss the difference relevance and then tie this into the current news around consensus and execution clients please explain what they are the differences and why diversity within uh these are an important issue I never seem to get it so I explained earlier uh I think was the first question I answered around our execution clients unlike the differences

between them and even consensus clients as well but maybe I'll I'll answer the The Meta question here about why client diversity matters for ethereum so there are a few reasons why client diversity matters so the reason why we have client diversity uh less than the main reason is that if one of the clients has a bug right if one of the clients has something wrong with it and then everyone was running that client so say 100 of the network was running that client if there was only a single client system well then the whole network would go offline right whereas with the way it currently is the the network is resilient to one two or even three of the clients are having major bugs in

them uh or basically having critical bugs in them that that send them offline or send them like out of sync with the chain because we have client diversity where people are running multiple different clients so that is the I guess like the main reason uh at least that's that's my understanding of the main reason but then there are other reasons as well so having a multi-client architecture also means better decentralization because there's not just one team building and the one ethereum client which would obviously be incredibly centralized we now have you know 10 plus teams building ethereum clients which makes it much more decentralized and the knowledge base is also much greater because we have much more people working on the ethereum called client protocol and the reason why this is desirable is because the ethereum protocol has a very ambitious roadmap we don't want just like five

people working on it we want hundreds of people working on it and I don't think that would be possible with just a single client you would need multiple clients to do that and I've seen we've seen that play out another reason is that each of these clients are built using different architectures built using different sets of code built using different principles built by different people from different backgrounds built to do different things like one of the consensus layer clients is built to be optimized for low-powered devices like Raspberry Pi's one of the other ones is built for uh kind of like um normal devices right uh and running on those and being fine to run on those so there are different reasons and as I mentioned before like earlier uh something like Aragon is built to be better at syncing archive nodes so there are lots of

different little differences and and pros and cons to each uh one there but yeah those are the two main reasons why a client diversity is is so important now also from a security point of view for we want the network to be client diverse as well because of the fact is is that if the if more than one client is actually above the 67 threshold on ethereum under proof of stake it means that if that client had a bug in it it could finalize that the chain could potentially finalize on the bugs chain and then to revert that would require a social consensus surgical I guess kind of rollback so to speak of the chain which is obviously not something that we want to be doing so we don't want any one client having more than 67 7 share

of the network so that that doesn't happen and there was actually a point where prism actually had more than 67 of the network on the consensus layer side and then we were able to get that down to under 50 and then improve client diversity there because we educated people and make make them understand that that was actually a very big security issue and that people could if they were running that Minority uh that sorry um that majority client could potentially get slashed when that social recovery was that was was put into effect there so hopefully that answers that question on on client diversity and your second question is would a USD a stable coin that's inflation proof be a real world concept I imagine it would be one USD that plus the difference in CPI or something the Clutter would have to be constantly added to in-depth amounts

I think it's a fascinating structure but will rely heavily on external data CPI data which is hotly the debated and oracles I mean yeah I mean it would definitely rely on oracles because these these outside data such as CPI data is not available on ethereum natively it requires Oracle to bring that data in but yeah I mean the only way it would work is as you described you would have to keep adding adding more collateral to make up for the loss in purchasing power to inflation right or the lost in I guess like stability to inflation and that just I mean logically thinking it through just on the spot doesn't seem like it would work very well it seems like it would punish the existing holders and dilute them anyway uh I'm not sure exactly how you would set this

up but yeah it doesn't seem like it would work and that's why I've said before Fiat Peg stable coins is really just a stepping stone I don't actually think that's the end game for these blockchains I think they need to have their own native money and instead of relying on off-chain Fiat Peg things all right so actually Mi has a last question here and they're piggybacking off of MK Cole's question where they said what app Financial or non-financial do you think would go viral where Skeptics would say [ __ ] it I'll download a wallet and throw a few bucks at this because it looks cool fascinating interesting that's not really scary of course social Financial or other what concepts have you seen that are far out there conceptually that made you think twice I think the an example of this is something like axi Infinity right where

I mean the problem with axi infinity is that like it was a bull market thing and it looked very ponzi-esque where you'd kept needing fresh Capital to come in to keep the party going but it did pick a lot of people's interests that did get a lot of people into crypto I brought a lot of people into the ecosystem got them to download a wallet you know on board via ethereum and onboard via the axi chain and get just do crypto stuff so that was definitely something that I found fascinating and interesting even though I knew it wasn't sustainable there was a similar one called step in on Solana that was basically rewarding people for exercising but I looked at that and I'm like this was already kind of tried in 2017 and the idea doesn't really make much sense because making it

civil proof would be very hard it looks like a Ponzi as well which it kind of was and I think it's kind of uh lost a lot of its uh usage because the market has been quiet and it required New Capital to come in um but in terms of other things that could go viral I'm not entirely sure to be honest I feel like a lot of the crypto ecosystem is definitely an on-chain Casino or even an off-chain Casino where the main value prop is speculation right now um and definitely obviously when the bull markets are really really hot more speculation and more people come in but I don't know what other things right now would would act like that because anything that brings in a lot of people really quickly by very nature I think would have to be speculative on on chain because if if you're thinking about

maybe non-speculative things or non-financial things like games maybe there could be a game a crypto native game that brings people in and actually adds something novel that people actually want to use and it brings you know millions of players in I can say that happening but in terms of like the financial stuff it's always going to be speculation driven I don't think there's going to be a case where people are like oh my God like I can do payments using crypto uh like I'm gonna just go and do that and like and I don't think they're going to do that because honestly for a lot of people especially in the west payments is is a solved thing uh for for them they've got Apple pay they've got venmo things like that payments the payment use case I think is more important for uh developing countries

that don't have access to that same infrastructure but yeah I can't think of too many things off the top of my head that would bring in a lot of people uh but yeah hopefully that that's a bit of I guess um a background on what I've seen that was interesting and what maybe there is in the future to come all right so one here from the HD sync who says do you think there is a central entity that drives ethereum expectations do expectations affect price if there is such a what can be done to decouple them I assume this affects legal and structural setup of the ecosystem no I don't think there is a central entity that drives the expectations of ethereum I do think that there are people with like louder voices than others because they're they're working on the actual core protocol so core developers and

researchers obviously have a louder voice and a more legitimate voice than other people in the ecosystem obviously someone like vitalik while he doesn't control the chain or anything like that he puts forward ideas and usually those ideas that are taken with much more uh sorry taken much more seriously than if they had come from someone else but I don't think there's any Central entity that drives expectations of ethereum I think there is a lot of people that come together you know hundreds thousands of people that come together and that set the expectations for the ecosystem in terms of how they affect price I'm sure they do over the long term and because I do believe that fundamentals are priced over the long term and for example you know the expectation was that eip1559 would be implemented the expectation was that the merge would happen and those

expectations definitely influence price over the longer term at least in my opinion um and then you know if the and then you ask if there is such a central entity what can be done to decouple it well as I said I don't think there is a central entity I think that as time goes on ethereum just keeps getting more and more decentralized I think that even the big entities like ethereum foundation and consensus really don't drive a lot of the uh I guess um uh ethereum expectations going forward especially not consensus over the ethereum foundation I don't think does either because as I was discussing before we have a very client diverse ecosystem that and a lot of them or most of them aren't funded by the ethereum foundation so taking all that on board and taking all that into account yeah I wouldn't

say there's any Central entity that drives the expectations it's more of a community coming together and driving them uh all together all right one here from RH who asks can you explain mev's role in the crypto entire crypto space to us like we are five I know Mev censorship and relays gets covered regularly on the refuels but I'm still lacking complete understanding of all these Mev elements and its significance so Mev stands for minor or maximally extractable value and what this means is basically that miners in proof of work and validators improve of stake have the ability to order transactions now what do I mean by that well basically when you send your transactions to the network they go into something called a mempool and then in

that mempool transactions are sorted by default or they traditionally have sorted by default by the fee that they paid so it's like a a kind of auction system where the higher fee you pay the you skip the to the front of the life you pay the highest fee you're at the front of the line if you have to pay the lowest fee you're at the the bottom of the line so to speak right now mev's role is basically if you can control the ordering of transactions well that means you can do things things like front running so for example if someone does a trade on uni swap you can front run that trade and potentially sell it back to them or potentially uh front run that and then sell it to another liquidity pool and make a profit off of that spread that's called Arbitrage as well I

mean not there's there's Arbitrage that falls into that there's front running there's back running there's sandwich attacks sandwich attacks are actually pretty brutal because what you can do with a sandwich attack is basically uh you can front run the user uh so so okay let me let me break it down you asked for explaining like I'm five so basically what a sandwich attack does and this is a form of Mev is that you can say you see a user that has a transaction that they've submitted to the mempool that they want to buy a hundred dollars of eighth using usdc and they're going to buy that off uni swap well you can go ahead and buy that hundred dollars of uh eth of unisot before they do and then sell it back to them at a higher price because you'll

buy uh move the price even ever so slightly Lee and then you can sell it back to them for that price that is a sandwich attack that is basically giving the user a worse a more Raw Deal than they otherwise would have had albatraoz is different in in that maybe you see that there's a price discrepancy between one liquidity pool and another maybe on unisop the eth usdc pool is uh is it has a price discrepancy with the pool on Susie Schwab Sushi Swap and you do an Arbitrage between those and you make a little bit of profit there then there is uh liquidation so say you want to be the one that liquidates someone's position on a lending market and you earn a reward for doing that well you want to front run the other people that are doing that so you you extract that value

by using these Mev relayers uh and and there's a movie uh sorry in there and and by send Choice by sending your bundles to these these Builders to these relayers in order to get your I guess to to get your profit from that now the what what Mev relays are and why we even have relays to begin with is because prior to Mev boost which is the software that powers the relays is what that uh came came to be the way Mev worked was that people would go around the protocol around the mempool and they'd basically submit their transactions directly to miners uh in kind of like backroom deals so you wouldn't actually see the transaction in the mempool at all you'd only see it once it had been included in a block whereas with Mev boost there is

a Marketplace for this now where instead of going behind in backroom deals there are multiple relays online there are multiple Builders and searches that all work in tandem to be in this Marketplace in order to I guess like sell the service of Mev so to speak so that it's more transparent it's not opaque it's not done through backroom deals that hopefully that explains it for you um you can always ask me in the in the Discord channel to explain further but that is Mev that is the significance of Mev and the reason why it is a problem long term is because Mev has chain destabilization properties in that if you leave it unchecked it can lead to things like I've seen with censorship right which is I mean censorship doesn't necessarily disable destabilize the

chain but it does erode to Credible neutrality and then also if you just have people doing um you know constant Mev and then everyone's value is just getting uh completely extracted there's backroom deals happening uh you could lead to really um nefarious things like reorgs and these are called time-banded attacks so the way this works is that say you want you have like a a block and and and and sorry say you have a block that's been mined and then you see okay well I can go back and I can re-org this block as uh as as a as a validator or Miner whatever it is uh and then make a profit off of that your basically what you would be doing is you'd be reversing the transactions or at least I guess it's

called orphaning the transactions that had already been included in a block in favor of your own and you would re-old the chain to benefit yourself and this gets and and eventually this could lead to like minor on minor or validator on validator or build on build up build a violence where it just that all they're doing is basically destabilizing the chain for their own profit and then the users get really hurt by that so so yeah but it goes pretty deep Mev is a very large kind of um a very large ecosystem it's not something that you can really explain like your five but there's plenty of resources online for you to check out flashbots has a lot of great resources the credits of Mev boost you can check out their blog but hopefully that answers your question there all right next question here comes from

ahak who asks can you talk a bit about the kzg ceremony for Erp 4844 a tldr and what it does and why it's necessary when it's happening and how to participate so the kcg ceremony is something that's required for proto-dank sharding uh or erp4844 now why is that the case well I have the kzg website up in front of me and I'm just going to read what they have here because it does a really great job of explaining what it is so the KSG ceremony is what's called a trusted setup and why do we need this trusted setup for uh 4844 to work well we need it because it is a prep preparation setup uh straight preparation step required for certain certain cryptographic schemes such as the kcg polynomial commitment scheme to be used

in protodankshading in our case the trust assumption is that one contributor needs to be successful needs to successfully conceal their secret for the result to be secure so basically it like it's it's pretty like technical right and uh and and it's a bit of a mouthful there but yeah the number one reason why we need it and why it's necessary is because without it proto-dunk sharding can't work because we can't have those uh polynomial commitment schemes that we need for pro dank sharding uh to work there and as I said the the the cool thing about this is that even though it's called a trusted setup you only need one honest participant so when the kcg ceremony begins that you're going to be doing a bit of computation on your computer if

you participate in the ceremony in order to uh uh to generate a secret and then successfully conceal that secret and then if there's 10 000 people that are doing that uh and there's only one honest party or in that ten thousand let's assume the rest of them are dishonest the scheme is still considered secure which is and and and and the reason why it's called a trusted setup is because you would still obviously need to trust that there is at least one person or one entity that is not lying that is actually being truthful and the really cool thing about that is that if you're participating in the ceremony and you know that you're being truthful well then you only need to trust yourself uh so hopefully that explains that but yeah you asked also when it's happening I don't think there's a date yet on when

it's happening I think that they're getting very close but yeah I don't I don't think there's a date yet and terms of how to participate well I'm pretty sure it's going to be hosted at the ceremony.othereum.org website and you'll be able to participate there and there'll be instructions on how to do that so hopefully that answers your question our hack all right next up we have a question from 182 who says what are your thoughts on the different l2s as far as being ebm equivalent versus something like fuel VM which supposedly optimizes for throughput and Dev experience is there Merit to both approaches will they be used for different applications are they centralization concerns with the more bespoke ones I think that it's amazing that we're going to be able to experiment with different architectures on layer 2 because it means that we don't have to change anything about

layer 1 ethereum we don't have to create new blockchains we can literally just create a layer to inherit ethereum's security decentralization and and consensus and then just focus on building out newer novel systems at these higher layers now do I I think there's Merit here of course there's plenty of Merit yeah I think this is an amazing thing to be doing and I'm really glad that we have things like Fuel and and Stark net and and other non-evm approaches uh in the wild right now and being developed right now um and there will be used for different applications uh there will be ones that would be specialized like for example Aztec Network being a specialized private network with their own architecture you have stock net having their own specialization that they want

to focus maybe on more things like games and which seems to be that a lot of their Focus right now um and then you know either centralization concerns I mean I think the centralization concerns are pretty much probably the same as they are for evm ones like the training wheels that we've seen like uh admin keys on Bridges and admin keys on upgrades and all that sorts of stuff those are the same sort of concerns but also if they're using new cryptography or if they're using uh something that's like a new architecture that's not evm maybe it's less secure and maybe it can be more centralizing but I don't think the concerns are too great uh there but yeah hopefully that answers your question that was a short one but definitely think there's a lot of Merit to to that approach there all right so the HD Sync has another

question here where they say I would like to hear your thoughts around the following analogy of ethereum structure with regards to Modern construct of separation of powers the ethereum research teams equals the legislative legislative power the ethereum called Dev teams equals the executive power code in action equals judicial power if we think above is relatively accurate analogy how do we make sure each of these Powers is neutral and fair especially the legislative and executive ones oh man I'm messing up imagination of words tonight when we want these two powers in action it comes to a budget currently the ethereum foundation is the budget Creator and owner how do we make sure the decisions are neutral and fair so I'll answer the last thing first the ethereum foundation is not the budget Creator and owner most of the teams and

most of the ethereum core devs and researchers are not funded by the ethereum foundation right now they may receive grants uh or kind of like some some portion of funding but the majority of their funding does not come from the ethereum foundation uh if you look at all the teams and people involved there so that's that's that's that kind of like question answered there but in terms of your analogies here I think that they're rather accurate and in terms of what keeps these Powers neutral and fair and in check and it's the social a it's the community that keeps them in check so to give an example what happens if the core Dev and research teams come together and say hey like we want to implement this into the ethereum network um but it's actually a bad idea so there was actually like a a case that was I

wouldn't say it was like a a case that was gonna it was something like that all the core devs and research just wanted but it was something that people wanted and that got rejected in the end that was something called Prague power which was this new mechanism for proof of work on ethereum called prog standing for programmatic uh which was basically meant to kick off Asics off the network elastic miners off the ethereum network now this was quite I guess like a lengthy and drawn out battle to get this thing rejected from the network and the reason it was was because the community made their voice known and basically said to the ethereum core devs and researchers hey we don't want this in the network right so it never reaches the code and action phase here and that is the check and balance on on those

powers and that is actually what makes a blockchain decentralized at the end of the day that checking power on the people who write the code um for these chains and Implement those new rules but in saying that no one is forced to run that code either so if there is a change that has been accepted into the network and put into the network the users can basically say well I don't want to run this I won't run this on my full node and I won't run this on my on my phone node and then I won't connect my validator to a full node that runs this new new code that I disagree with which would obviously lead to a fork in the chain if there was a large number of people doing that but but yeah the overall answer to your question is that the community keeps

those powers in check all right so uh next question here comes from uh D Fernandez who says what do you think about a merger and acquisition strategy for ethereum for example the AF could acquire tazos tokens and use their on-chain governance to turn tesos into an L2 on eigenlayer similar for other altel ones even if they don't have on-chain governance same question for polygon stock where Etc requiring other chains and making l3s I mean I don't think that it's worth acquiring the chain itself I feel like that's really inefficient Capital wise and really murky I guess social governance wise I feel like the better approach would just be to Fork that chain if you wanted to create it on on ethereum my 4K and create an L2 out of

it so for example Fork tazos make it into an l21 ethereum and then you know build an ecosystem from there uh or Fork one of these other chains and do that there I don't think it would be worth buying governance tokens and then trying to push to a vote and then I don't know I don't think it would work because then what you would have is say you did it for tazos you would still have the original taster as a layer one and then you would probably just have like a fork as a layer too so really you're better off just forking the code base re-jigging it so that it fits in to to be used as an ethereum L2 rather than trying to do mergers and Acquisitions or hostile takeovers or these other chains all right so uh one question here from

SS who says given the absolute shell shellacking of the entire industry so many scams leverage pump and numb so much loss of trust money by retail institutions and smart money incoming tough regulations do you expect eth crypto to ever recover to new highs and if so when uh yes means the short answer uh these are all you're saying literally all the same things that were said in 2018 and 2014 uh like word for word basically uh yes even crypto I mean I I'm confident Heath a crypto more broadly I don't know which other cryptos will recover right on an individual basis but as an ecosystem it's going to be fine right uh at least in my opinion and in terms of new highs no idea I like honestly it could be next year I put that like honestly I don't think it's

gonna be next year but it could be could be the year after I don't know to be honest like I'm more of like a decades thinker I I think like decades out I don't think like the next couple years next few years um I guess like the shortest time frame I may think in right now is like a five-year time frame but definitely more of a decades-long thinkers so yeah I expect ethereum 8th crypto generally as an industry to be fine and to recover new highs anyone's guess at this point and then you had another question SS where you said what are your thoughts on eth being classified or not as a security where do you use eighth being at where do you use Eve being since the era of cheap money is over how does crypto ever recover from this I mean I'll I might I'll just answer your first

question because the other two really are answered by the your your other question that you just asked um what are your thoughts on Earth classified or not as a security I've given my thoughts a lot on this on the refuel and in the Discord channel so I'm not going to rehash all of it the trdr is that I don't think there's really any chance of it being labeled as security um at like really at all it would make no sense and I'm actually there's actually another question from someone else asking about this that I'm going to answer and go into more detail uh but I'm not concerned I don't think it's something to be concerned about to be honest all right a question here from Noah style who says as a developer looking to get into the crypto industry I'm curious what advice you'd have currently for

going about that for instance does contributing to open source crypto projects as a first step make more sense than trying to directly apply for roles as a noob how to evaluate projects and companies especially with an eye toward how legit they are any useful resources out there for learning their ropes well enough to contribute so I would say you would have more of a chance if you were actually building things and have like a GitHub profile that you could show a project um uh and show that you're contributing to open source then if you weren't doing anything I definitely think you'd have much more of a chance doing that and I think that's rather obvious to be honest because it's like that is your resume so to speak and that is something that you can show that hey like this is the code I've done is what I've worked on these

are the projects that I've contributed to rather than coming into a job interview with a team and being like them asking you know what have you done and you're being like I haven't really done anything I'm kind of a noob right now right that I mean I'm not to say that that can't work because there are teams that like taking on Juniors and noobs but I I think obviously much better off contributing to open source you know building your own projects and showing code and showing these projects that you actually can write code and um and then you can actually build things and that just increases your chances uh there in terms of evaluating projects and companies especially with how legit they are I mean there's a bunch of different things you can do um I I know saying like the vibe you get from the the project is like maybe a bit

of a cop-out but for me it really is the vibe like I can actually like when I look at a project I just quickly at first glance I get a vibe from it and I look at it and I'm like okay this doesn't seem very good first red flag for me so I'll go through the red flag as I look at with projects first red flag does it have a community that's really rabid right and that's really silly that every time I talk about the project they put the they they talk about the ticker of the coin behind the project right that's number one red flag number two do they shoot very often or not they don't shoot very often and they don't actually have many products out there and don't have much product Market fit another red flag there uh what does their Discord Channel look like are they

actually really are really active in there are there answering people's questions is it full of moon boys or is it Phil full of actual builders in there right um that's another one uh what what is like uh does is their project actually like sustainable or is it just a Ponzi are they using like really aggressive liquidity mining uh techniques just to to Garner some interests are they doing like really dodgy marketing promotions all that sorts of stuff so as I said it's like a Vibe of all those things together to to kind of like uh get it to gauge the legitimacy of different projects and then you also asked like is there resources about learning the ropes there are there's plenty of resources go to ethereum.org there's developer resources there in terms of finding jobs cryptocurrency jobs uh what the cryptocurrency jobs website is a very

great resource of finding jobs but ethereum.org is definitely somewhere to get started as a developer for sure all right next question here comes from Christy cloudy who says hi Anthony I would like to ask about your opinion on D5 protocols resilience recently there was a situation with Ave and RVs RVs shorting of CRV which would should cause a bad debt in are there what kind of prevention should lending and maybe also other D5 protocols have to prevent this IMO the Insurance Fund consisting of their own tokens isn't the best idea because it makes the project even more vulnerable in such an attack situation occurs so I would say the Insurance Fund is is a good idea but yeah as you said like in their own tokens not the best idea so an Insurance Fund in uh like USD stable coins for example or an eighth

probably a better idea but in terms of something else they could do for for Lending protocols just don't onboard shitty collateral right and and don't have uh kind of collateral on there that has low liquidity that has centralized Supply that is easily easily manipulated uh that is like number one thing you can do to prevent this in terms of controls and I think arbe is decent at doing this there are other protocols that do this differently have like isolated markets so there's no contagion as well it does lead to some trade-offs where isolated markets means that it's harder to scale up the system but it's safer so maybe just have like isolated markets of a long tail of assets and then have markets that have like a lot of liquidity a lot of um like like eth for example uh not isolated

from certain other markets but yeah that's that's kind of the two things that I would uh I would look at for sure all right we have a question here from uh kiwidog four who says do you think this bear Market in this bear Market that Builders will be able to replicate the full centralized experience uh centralized exchange experience but in defy Auto DCA with Stables good limit orders other auto types and an easy to use experiment experience especially all in one app do you think we thank sharding l2s may actually be cheaper to use than centralized exchanges yes it's going to take dank sharding I don't think it can be done now because while Layer Two fees are cheap they're not cheap enough but in saying that you can build a validium which is obviously is not a roll-up uh which is what uh DIY DX

did and have something that is extremely cheap to use and mirrors the experience of a centralized exchange you could already do that but in terms of doing it on a roll-up dank shining will be required here but I do think that they can we can actually replicate the full centralized exchange experience in defy with those cheap fees with the the speed of um of of uh of the transaction speed I should say sorry and the scalability there but obviously it's going to take layer twos and dank sharding for us to get there all right so a Norseman has a question here about eth as a security and it's quite long so I'm really just going to focus on the meter vet about um you know uh like they they go on about like there's a lot of fun about it and things like that but they they say you know

what would it look like if if your if was labeled as security and they say you know there are two possible outcomes if the Boomers uh screw it up and label it as security it's labeled a security in the short to medium term and eventually it's able to commodity later it's labeled as a security and bureaucracy gets in the way and they're never able to Circle back and label as a commodity obviously number one will be better than number two but do you think there are any notable differences between the two possible outcomes what do you think will happen to ethereum the network versus ether the currency and the price and the two outcomes I know you don't care for the price that much but this could be exceptionally dramatic event I'm more concerned about the network than the price here but I would surely see

opportunity if gets hella cheap so I would say that in both options my answers will be the same so I think I'm just going to answer for both of them here I for one don't think there's really any chance of each being labeled as security for two it make would make no sense because there's no Central party that for example the SEC could go to to demand Financial reports from so for example the ethereum foundation is not a centralized company that controls ethereum or eth No One controls ethereum or eth so no one can produce quarterly reports no one can produce uh investor documentation no one can produce the things that the SSC would require for their for them to kind of I guess adhere

to being labeled as security so it's just unworkable it makes absolutely no sense that's why it makes more sense that if commodity I mean that's one of the reasons why it makes more sense for each to be a commodity than a security but like just generally eth does not look like a security to me at all eth looks much more like a commodity it is used as a commodity it's a commodity money in my in my view not a security but the second thing also is that for something to be labeled as a security what would have to happen is that the SSC would have to either prove it in court and I don't know who they will take to court they'd probably have to take like or try to take the ethereum foundation to court but the ethereum foundation has to I mean then the SEC

would have to prove that the ethereum foundation has a central control over ethereum which they do not right um so they have to win in court or they have to get a settlement from the uh I guess like Central entity that controls the theory of which there isn't one so when you actually Walk Through The Logical steps here there is no way for the SEC or for any Securities regulator to actually uh Buy in from my interpretation of the law label eth a security and if they did if they went and and found some way to do it there wouldn't be no way for the ethereum network to produce what is required of a I guess like um of a company so to speak that has an asset that is a security uh to produce right so those are the

reasons why I think it's a very low chance of happening but if it did happen obviously it's going to be really bad for the price of eth like obviously I mean not just from the fact that people are going to sell it out of panic but also because like legally the exchanges would have to de-list eth because they're not registered to trade Securities right so that would be a huge blow teeth and the price would be would would be would be um would take a very huge hit for sure like I'm not going to sugarcoat it and say it wouldn't take a hit but for all the reasons I outlined before about why I don't think it's going to be labeled a security um in terms of the chance being basically zero percent applies to that as well so honestly for me it's not something that I think about really at

all I only ever think about it when Bitcoin maximalists love to just use it as a fun piece or when people ask me about it I don't think about it at all I don't I don't worry about it I'm more worried about if I'm being honest like crypto in general and these crypto networks are being sanctioned by ofak for example like what's the stop ofac from sanctioning the entire ethereum network like they show that they can just sanction tornado cash and there's no kind of repercussions there for them doing that so what's to stop them from sanctioning their ethereum network was to stop them from sanctioning the Bitcoin Network right so I'm much more worried about that than I am about Heath being able to security if if that kind of puts it into context for you and uh yeah hopefully that answers your question there and gives you a bit more

color on how I think about these things all right so getting on to the last question here one from Christy cloudy again who says uh this time uh my question is about Angel Investing what is a typical time Horizon for exiting from a company as an angel investor invested in well I don't think there actually has been a typical time it can vary quite quite wildly so sometimes I'll invest in a project and they'll do a token launch like a few months later and sometimes I'll invest in a project and they won't even have like a token launch on the horizon they obviously haven't gone public so there's no equity so there's no stocks or shares that I've gotten uh and I my oldest Angel investment or one of my oldest Angel Investments is actually uh Zappa so Zappa the the tool that I'm sure a lot

of you use I invested in that on what is it I'm just looking at my age my sheet here August 2020 so it's been a over two years um and yeah they're not public there's no token there's no uh they're not public you know there's no shares or anything like that um you know some of my oldest actually don't have any like there's there's doing analytics here which was um September 2020 same deal with them uh right uh I'm just going through my list of of ones that aren't don't have a token or shares yet slingshots um uh there's arbitrim uh these were done in mid 2021 so yeah I would say that that there's no kind of I guess uh average and it can vary based on the project definitely and it can vary based

on the round too so like if it's a seed or a pre-seed it's going to be a lot longer if it's a series B it's going to be a lot shorter like I was in the optimism series B not in their C round and uh their token launched uh shortly after that I think let's have a look at optimism I invested on uh yeah in January of 2022 and their token went live I believe in in April or May so not too long after I invested in it so yeah it definitely does vary on on what kind of round they get into but also varies based on the project as well all right so I think that's all the questions I've got for today so hopefully you all enjoyed and hopefully I answer the questions to your satisfaction um but yeah thank you all for listening

and watching the next AMA will happen in uh probably two weeks from now actually probably not because that's like Christmas time so in the new year so maybe three to four weeks from now but definitely go ask your questions in the AMA series channel on Discord if you have any within the next three to four weeks and I'll get them in answered on the next AMA series but on that note don't forget to subscribe to the channel uh give the video a thumbs up and I'll catch you all on the refuel uh tomorrow so thanks everyone