The Daily Gwei AMA Series #5 - 10th of July, 2021

Transcript

all right everyone we're going to get started so hey everyone thanks for coming to the fifth daily way ama today this is going to run for about it usually runs from anywhere from one to two hours just depending on how many questions there are i've got a fair few noted down in my sheet here uh but definitely feel free to uh kind of ask questions as we go through as well uh just some ground rules please stay muted unless you're talking uh because it the background noise gets annoying for everyone else uh and the way that the ama will be run is that i'll be reading off one question from the kind of sheet that i have here these are the questions posted in the ama series channel um and then i will be taking one from the audience and if there's none from the audience i'll just keep moving

through the sheet uh so this ama will also be recorded and uploaded to youtube so if you have to leave part way through or you know you join part way through and you want to catch the whole thing it'll be there with time stamps as well so yeah without further ado i'm going to jump into the first question i have on the sheet here so this question comes from yan the thorn who says my question is about ethereum and relational data i've heard of ethereum is like the app store but for dapps i'd imagine the infrared needs some sort of analog to the relational databases of the app world eg say i wanted to build a decentralized rise sharing app same concept just no middlemen taking cuts in order to pull that off i'd still need users with accounts write history etc i would need to both store query that info

does ethereum natively offer this functionality and if not how would i obtain it so i mean ethereum does offer this it's basically what ethereum is right a blockchain is essentially just a database at the end of the day and a decentralized one at that or it can be centralized too i mean not every blockchain is decentralized um but obviously ethereum is not cheap to write to it's extremely expensive to use um and storing any kind of like large data on ethereum is is going to get probably expensive and you're limited as well like ethereum is limited by its gas limit um and what we call the state in ethereum which is basically like how much uh how much kind of like data can we store on chain um so yes ethereum can do that on its own and we can query ethereum for all different things i mean the graph an

entire project is built around querying the chain um and kind of returning results back and you see this on like a lot of the d5 front ends that you'll use uh there'll be like all this information displayed to you uh but that is coming from the graph and the graph is getting that from directly from the ethereum blockchain um and they might be doing it through a service provider or infrastructure provider like infuria or alchemy or they might be running their own kind of node full node or archive node or whatever you want to kind of call it there um now in terms of things that can kind of like be additive to ethereum and where ethereum can get data from and tap into it technically it can be anywhere right you can you can kind of like uh point ethereum to a point like a smart

contract to read from some source of data that's coming from off chain so the perfect example of this is chain link where chain link will publish this data to kind of ethereum um and you know that's kind of like coming from i guess like the outside world it's like off-chain data being put on chain uh then there are dedicated projects like file coin and and ipfs and r weave and stuff like that where the data is stored and you know those projects are trying to decentralize the storage of that data that ethereum could also tap into um but i'm not an expert on this but like i have been reading some stuff about the fact that um just because the data is on these other chains and it's essential maybe it's decentralized on those chains when you start reading it from ethereum um it gets it gets

it gets a bit um mixed up or messy because of the fact that oh sorry someone's not on mute uh agoras m labs can you please go on mute i'll just mute them there oh good um yeah it gets a little bit messy because you have to introduce new trust assumptions and it just uh it can lead to attack vectors and things like that so hopefully that answers kind of your question um around the the databases and how they work and you know can they decentralize and stuff like that uh and then you know to your point about using a rise sharing app as an example like a fully decentralized ride sharing app or or a social media app whatever you want to do that requires lots of lots of data i mean that is definitely uh part of i guess

part of ethereum's vision right like the web 3 vision it's not just ethereum but like crypto in general this web 3 vision where we decentralize out like all layers of the stack uh and and and so we're able to do these kind of decentralized social media and ride sharing apps whatever you want to whatever you want to kind of call it um so but i think we're still very early i think it's going to be a while before we get to that point where we have the infrastructure in place we have enough demand for it too like if you really think about it i don't know how many people are demanding decentralized kind of like uber for example maybe the maybe the drivers are maybe they're getting screwed on fees or whatever but i think that there's a inherent kind of like demand problem there

whereas with something like d5 i mean d5 is not only kind of like decentralizing finance it's improving it by like a thousand x like more than that like it's it's literally restructuring the entire system building it from the ground up um whereas i don't think a decentralized uber for example would would necessarily be like a massive improvement over the existing kind of thing and that would lead to slower adoption and obviously with things like ride sharing apps and social media it's all about the network effects and you need large adoption for it to work it can't just it has to it has to be big to work i mean it's kind of like a chicken and egg problem but uh yeah so hopefully that kind of like um answers the question adds a bit more kind of color there yen um but yeah i'll take one from the

audience if not i'll just keep moving through uh the sheet that i've got here anyone feel free to speak up you there's no need to raise your hand just unmute and speak hey anthony i've got a question hey mate yeah yeah so you made a tweet uh i think it was last week about working for dows or finding a job uh working for a doubt um and i was just wondering like how i should go about doing that so um is there like a resource like a database for dows um or is should i just like join like dows on on discord or like yeah what would the process be for doing that yeah it's a bit uh i guess like random the process right now there's no kind of like real structure to it i

think from what i've noticed because it's still so early the the thing that i notice people doing is that they'll join a project's discord channel that they that they like uh or that you know they like the project um and they start getting involved on there they they talk to the the team they talk to other community members they start you know browsing through the the governance forum adding comments in there uh you know they may pick up tasks that are kind of like just outstanding like some dows will have tasks where they'll be like okay well this is on like this is part of what we want to do and like anyone can pick this up and run with it and then you slowly kind of like get into the groove and kind of become part of the community and people know you uh and you you know you might become

like a moderator of the discord or you might become like a core contributor down the line or something like that uh as far as like a a kind of repository of of dows and like a list of different dowels i'm sure there's something out there i'm just it's not just not coming to me right now but there's so many of them that i guess like it becomes a bit harder to track i think there's dow house um house spell h-a-u-s um uh where they've got like a list of dowels there uh but generally yeah it's it's really just finding projects that you like joining their discord channels because they pretty much all have discord channels um and either kind of like just kind of easing into it getting to know the community kind of hanging out in there or just straight up asking hey like how can i

contribute and you know someone will tell you and then you can kind of get started from there from what i've noticed it's all noticed it's all merit-based there is no like hey what's your resume or anything like that it's you know you get the work you take on the work you do it and then you show like through time as time progresses on that you can do the work and you can add value to to the dow and usually like um compensation happens through voting uh where there will be like a vote done uh maybe it's once a month or something for for contributor compensation there'll be a proposal for it and then that proposal will get voted on by either the token holders or there'll be some kind of like process that goes on there if there's no token for the project yet sort of thing

so yeah it really is a loose process as i said it's nothing like really defined at this point in time and i think that's actually the beauty of it where it means that anyone can join and you don't even have to be known you can literally stay anonymous um because you're getting paid with um on ethereum you're not getting paid with fiat uh you're basically getting paid in stable coins or eth or the project's token it's normally the projects token uh and you know that way it basically means you can stay completely anonymous and you literally only judge based on your merit no one even needs to know who you are where you're from or anything like that so i think that's pretty cool so um but hopefully that answers your question yeah it does great thank you awesome all right next one from the

sheet here so con lemony uh says ultra long term 20 to 25 years from now uh for example when crypto is fully mature aka reached a fully embraced level globally what will be the role of fiat how will governments be able to pull the levers they do today and control money supply government debt financing money rules without control over money how will they be able to function at the level that they want in other words the ultimate boss will eventually try to control will that inevitably lead to destruction as crypto and control and control not regulation but control do not mix and it defeats the overall purpose so eventually does the promise get realized and then crushed so i mean this is a pretty big question i'm not going to say like i'm an expert

on global geopolitics and feared and what governments are going to do and all that sort of stuff but i think the way i kind of view this i've been asked this a few times privately i think fear is going to be around for for a while in some form or another and fiat really is just the um the notion of like money by decree by some nation state now it doesn't have to be the current kind of proper fiat that we have it can literally be any kind of any country or any sovereign nation state or government just saying we're going to issue our own currency sort of thing so i think that fear is going to be around for a while even 20 25 years from now and i think that a lot of the um things within crypto uh i think that the term cryptocurrency

is actually misleading at this point because a lot of these things aren't currencies and a lot of them will never be currencies and uh you know people say okay well bitcoin is going to be the world's money one day or you know people say it's going to be the world's money one day or something whatever you want to say oh like some people say doge or whatever but the the problem is is that um you know depending on how you kind of look at it the you know i mean there's arguments for and against and everything and there's bad things to fear and there's good things to fear but uh generally you want stability when it comes to money right like for something to be good money you want stability uh and for like you know for something like bts like i don't see them ever

being stable especially like eighth when if we do get that deflationary kind of nature happening uh post merge post one five five nine we're gonna have this kind of um asset that is always going to be volatile and i mean it depends what you measure it against obviously if you're measuring it against fiat then naturally over time it should go up because assets that are restricted in supply should be going up against fiat since the i mean the whole point the fear is that it inflates and the government can print more to to finance various things um and to kind of like you know run the economy essentially so i think that that from from that point of view the way i view like crypto assets like btc and eth are essentially like new kind of i guess some stores of value for one right

that's a popular thing uh i mean maybe this is just just applying to btc i still think it's a story of value but ethan has like much more utility beyond that um while i don't think eighth will become like a currency or or a money or i mean it's already money like a good money or a good currency where people want to actually denominate in this um and that it runs the world sort of thing i do believe it's uh kind of like serves its own very strong purpose within the ethereum economy itself and same with like bitcoin i guess within the bitcoin economy um you know it's very limited of course but you still need btc to pay fees on on bitcoin and stuff like that and people hold bitcoin as like a store of value or whatever or like a inflation hedge or whatever you want to call it

i mean i i kind of don't buy into the hardcore kind of like bitcoin to talk about bitcoin being the only good store of value and being the only good uh kind of like inflation hedge because i do believe that uh pretty much like everything that is non-inflating um that you know is tied to some kind of like value some like stocks is the perfect example here um is gonna just increase over time especially stocks in in companies that have been around for a long time and and you know high chances they're going to be around for a long time in the future uh i just think generally you can get that from other assets as well and you know no one's using stocks as money so that that's kind of like how i view b and no one's using gold is money i mean

you know gold obviously backed it was a collateral type for money uh it was backing the us dollar for quite a while but the thing is is that you know that the reason why the u.s went off the the gold standard was because it was restricting their ability to print money and they want to do they want to put money they like to print money it solves a lot of issues for them uh so yeah i mean as i said this is a this is a big question there's a lot of different kind of winding parts you can go down but i think that the through line as david hoffman loves to say is that uh i think that calling these things cryptocurrencies is the wrong terminology now i call them crypto assets because each of them have their own kind of way of accruing value have their own use

cases and i don't think many of them are money i mean stable coins obviously are money because they're tied to the us dollar and i'm very interested to see how things like rye progress where it's it's just stable to itself and backed by a decentralized collateral type like eth but those are still very early experiments and things like that and if those things pan out something like rye pans out uh that could be the new kind of global money right uh and and and that could still be decentralized because it's backed up by eth or kind of other decentralized assets there so i think that in terms of uh governments being able to control things i mean they can try but i think that it'll get to a point where uh they'll you know i could see sometime in the future like

far into the future maybe maybe not even too far into the future but some kind of government backing up their own currency that they issue with uh btc or eth as collateral for that kind of our currency so like going back to a gold standard but with btc i don't know i can see some smaller countries trialing that and seeing how that plays out that would be quite uh quite an experiment to see but i think that there's no kind of like strong answer that i can give to this overall question because it's just there's so many unknowns and so many different paths to go down when it comes to this but you know generally i do think that governments are going to well it's not all governments i mean it's not like you know the there's like a one-world government uh that controls everything i

mean some people believe that but i don't um you know it depends which government you're talking about but if we're talking about like the biggest ones the us you know um the ones in europe the eu i guess in general things like that then i do believe that they're gonna kind of i guess they won't outright ban things but they're gonna they're gonna regulate things as much as they can for sure uh and you know it's gonna be interesting to see how the crypto ecosystem responds to that and how decentralized that actually is because at the end of the day the true test of this decentralization is when we actually have governments and nation states coming after these platforms because they have an unlimited budget because they can just print as much money as they want especially the us i mean the us has a

800 billion dollar military budget if they wanted to they could kill not kill but they could basically severely uh hamper the bitcoin network because they would just attack it and they could they could do the same thing for ethereum even under proof of stake they could do it um so i think that and i mean they wouldn't even have to go after the network they could just choke all the other on and off ramps because they have all the regulations and things like that so the i think you know the turning point in all of this was el salvador making btc legal tender and i think defy getting more and more pro uh prominence we've entered like the geopolitical arena so i don't think we're gonna have to wait 20 to 25 years to see uh what government how governments react here and how they're going to start kind

of i guess doing things i mean we've already seen them do cbdc central bank digital currencies but obviously that is tied to their own currency like a us cbdc will be tied to the us dollar of course um and maybe that is the way that they kind of i guess keep their control and and basically allow things to exist while uh still being a big part of that is by issuing these things on networks like ethereum maybe they maybe they do that and they embrace it that way uh and then that's how they kind of maintain control so yeah i'll leave it at that because i've uh as i said like this goes down a lot of different different parts but i hope that kind of gives you some stuff to to think about uh conley con limonoi there li money i think that's how you say it

anyway uh okay uh one from the audience if not i'll keep moving through my list here all right all good and feel free to ask it in the ama series channel as well as we go through i'll check those at the end after i'm i've done through the sheet here so this one comes from augustus ave who said unisop versus sushi swap which do you think has a great long-term competitive advantage so i think that these comparisons between unisap and sushi swap are actually moot at this point i think these two projects have diverged so much uh that they're actually completely different things now yes they both you know started off as an

amm um you know sushi swap started off as a fork of unispot but but that ecosystem sushi swaps ecosystem has been building out quite nicely i think they're doing a bunch of different things they have different platforms on there and not just like the amm they have i mean they announced the other day they're going to be doing an nft platform they have their money market stuff going on they're doing a bunch of other things like from what i've seen uh whereas uni swap is really kind of focusing just on the uh the amm aspect and and improving that as much as they can and obviously with unisop v3 it's very different to v2 and that means it's different to sushi swap where uh i think sushi swap is still favored by the passive liquidity providers because of the fact that they don't want to have

to keep managing their positions like you do with v3 and concentrated liquidity so i just think that definitely it's good to think about these projects as complementary not in direct competition anymore and judge them based on that and you know at the end of the day uh uniswap still does you know 10 times more volume than sushi swap at the amm level but uni swap isn't pursuing these other things there's no there's no you know unisop nft platform there's no money market that union swap is doing i don't think they're going to go down that path i think that they're just going to keep trying to make the best um decentralized exchange ever essentially i don't i just i don't see them going down the path of of kind of like adding on all these other things whereas sushi swap is like an entire ecosystem rather than just

focusing on the exchange aspect and you know i think that's smart because if i'm being honest i don't think uh anyone can really catch unisop at this point it's good to have competition but if you look at who's involved with uni-swap if you look at kind of the the dominance that they have and the fact that they just keep growing i mean their network effect their brand their kind of like the amount of brains working on that project not just part of the core team but also part of our paradigm their lead investor i mean a lot of you would know who paradigm is they've got you know pretty much the smartest people in the ecosystem kind of working there uh and on top of that they have a pretty vibrant community as well one thing that unisop i guess probably has it worse off than sushi swap is

maybe the the governance side of things the community governance side where uh it's it's a bit messy uh and you know governance is always messy but i think sushi swap probably has a leg up there uh but as i said like if you're just comparing the exchanges to each other then yes obviously unisop is leaps and bounds ahead um but that's not to say that sushi swap isn't improving their exchange either or they won't appeal to kind of that those people who just want to do passive liquidity providing but but i think sushi swap played it smart where they said well we need to add more kind of products here and features here we want to do more we don't want to just be stuck on the decentralized exchange kind of stuff uh and yeah that that's kind of like my general view on those two and the funny

thing is i actually started off really hating sushi swap i thought what they did with the vampire attack was really gross originally with uni swap um and you know i i kind of still think that to this day but the thing is i actually gained newfound respect for for that that whole team and that ecosystem when they started doing things that were different and they actually you know kept at it they kept innovating they weren't just like a straight copycat fork anymore and obviously um you know the creator chef nomi did the rug pull and then reverse rug porn and like left and there was so much drama around this project but i think looking back now it's been almost a yeah i think what 10 months or something at this point i've seen sushi swap came onto the scene you look back and see how far they've

come and how much they've changed i think it just stands on their own as a project now and obviously uni swap does as well so yeah hopefully that answers your question around i guess my view on those two projects um but yeah anyone in the audience i feel free to ask a question if you have one cool i'll move on to the next one so this one comes from dumb genn or who says i want you to address the reason behind the price of sales ratio of eighth um going up lately and this was asked on the 29th of june i think i think it's the same now so the reason why it's going up is because the gas fees came down right where it's it's going to go up if i mean this is why i think price to

sales and price to earnings ratios uh for something like ethereum and bitcoin maybe don't make too much sense um but it's going to go up if the fees are going down and the and the eighth price is still like quite high because basically all it's measuring is like how much kind of like fee revenue is ethereum doing against that's market cap now obviously the fees came down what 90 percent from where they were if you say that that um 100 100gwayo was like the norm for a while and then it dropped to like 10gway so it's about a 90 drop whereas the eighth price hasn't dropped 90 it's dropped like what 53 or something last time i checked whatever the price of eighth is now um 54 i think so that from that reason alone the price of sales ratio is going to go up because there's less fear

revenue being generated but each price is still um you know a lot higher than it hasn't dropped 90 of course so it hasn't kind of dropped to match that um so that's kind of like the reason why it'll go up and obviously on the other on the other way it'll go down when uh the fee revenue goes up and uh if you know depending where the price is as well or i shouldn't say price just their market cap of ethers as well um it'll change based on those two kind of factors there uh now as i said i don't think price to sales or price to earnings ratios are a good way to measure things like eth or btc simply because as i was explaining before there's a lot of different kind of assets in crypto you can do a a p e or p s uh ratio on uh things

like defy tokens because they're basically equity uh in the protocol i i guess you could say whereas with ethan btc their stores of value their money their collateral they have a huge history behind them they have monetary premium behind them um so there's a and you know i mean ethies uses the staking asset and things like that it's like a capital and collateral asset so there's a number of other reasons why it has value and even if like the fees on eighth was zero dollars uh it would still have value now in saying that i mean there's plenty of blockchains out there layer one blockchains that have essentially zero fees their price to sales ratios are absolutely massive but they are worth a lot i mean take cardano for example it doesn't even have smart contracts the fee revenue is basically zero

but cardano is still worth what 30 40 billion dollars and i don't think i don't know is a story value or has monetary premium but if you kind of dive deep into it you can see that most of the supplies staked you know through their depos system it's like 78 of the supply staked uh which means there's not much trading on there and they have like a massive kind of i guess marketing vehicle behind them and i guess some people will call it a cult or whatever the cult of charles so you know you have other reasons why the token has accrued value which is funny because as i said like there's so many other reasons for these uh these assets to to accrue value not just based on a pure price to sales or price to earnings ratio but i do think that looking at this sort

of stuff for default tokens not even just for default tokens but for something like the axi infinity token i mean that's what everyone's kind of looking at right now i mean axs that token is going up in price because the platform is earning more revenue from that kind of like uh from i guess like from people playing the game and that's going into like a treasury and stuff like that so and then people look at the price of sales ratio and like oh my god like this is you know this is cheap i'm gonna buy this uh and then also when you're looking at that you take into account future growth as well so some defy tokens will have like a really high price to sales ratio for a number of reasons you know one might be because it has a lot of hype behind that it's going through some sort

of mania i mean we see that play out all the time in crypto or another reason might be that um there's a there's kind of a lot of promise behind it say they've got a major release coming up and everyone thinks it's going to be amazing so they're bidding it up but i guess that falls into the speculative kind of mania reason as well um but yeah so i mean this is kind of like the price of sales price to earnings comes from the the equity stocks world this isn't unique to crypto uh but i do think there are a few different unique things in crypto that um that you have to take into account when looking at that especially when you're looking at it for assets like eth and btc because they are stores of value and and you know they have a monetary

premium it'd be like trying to do a price-to-sales ratio on gold i guess as an example here it'd be quite hard to do that um because it would you know i mean you could do that but i mean gold utility value is a very very small part of its actual overall market cap um so yeah hopefully that answers your question uh dumb gun or dumb gen correct me if i you know in in the discord chart i don't exactly know how to say it there but anyway i'll take one from the audience if not i'll keep moving through the list here yeah thanks for addressing this question and i'm also curious how we can in economics how we can distinguish price to sales from price to earnings ratio yeah so i guess i guess the way you would look at it let me use an example

of like uni swap so with with uni swap there is um there's a lot of revenue going to liquidity providers um and there's none going to token holders so as a token holder of uni you can't stake that to get any share of that revenue all of the 0.3 of the fee on every trade that uni swap takes um all that revenue is going to liquidity providers so that would be kind of like the the price to sales ratio if i'm if i'm thinking of it correctly whereas the price to earnings would be what the actual protocol is earning and then kind of you know if they're distributing out that to the to token holders or not i mean they don't have to because sometimes protocols like

yearn for example will accrue uh i guess like the fees to their treasury but they won't pay it out to token holders whereas something like sushi swap or avail will accrue you know a lot of it to the treasury or they'll first accrue it to the treasury then they'll pay out some of it to to stakers as well um to people staking like the the respective tokens so that's how i would distinguish between price to sales price to earnings is basically how much of the revenue is going to the the um the supply side essentially so like the liquidity providers and how much is going to um the the kind of like stakers or the token holders or the i guess you can call them equity holders if you want to use that terminology as the kind of price to earnings um or i guess not even just going to the

token holders going to the protocol itself so going to the treasury or something like that or to the dow cool cool all right on to the next one from the list so this one comes from marco47 who says what site or app do you use to track an assets performance relative to eth in particular something that displays all their performances in a summary tab and then historical graphs once you select a specific asset so i just use trading view to be honest um so i'll just like type in xxx and eth and then it'll compare it against eth um there obviously are a lot of uh a lot of coins that don't have um a chart against eth especially the newer ones and

they uh they don't have a longer price history because it depends on when the exchange has listed them uh but generally that's what i do i just use trading view or i use um uni swaps uh kind of like uh charts on there i guess their website but also chart x is another one that i use that usually has uni swap pairs and stuff like that um you can see this you can see it on coin gecko too i think they show it against eighth as well and maybe coinmarketcap does as well but that's how i generally do it because i don't really care like what i care more about the history than i do about the current kind of price performance against eth so the way i look at it is i'll go look at like a chart say it's like um 8th btc for example uh and then i'll

look at how eth has done against bitcoin and then i'll be like okay well is do i think this is in an uptrend or do i think this isn't a downtrend and that's not me kind of like trying to trade anything but that's me kind of looking at it and being like okay well is it worth the risk of me going into this kind of asset if like it's it's pretty much like can't perform against eth and then i'll kind of like track things like how correlated it is so you know if ether is going up is this thing going up at the same time or does this thing lag so if this other token lags eth then i don't think it's going to outperform either because or it could outperform ethan bursts but you know over the longer term if it's a lagging uh kind of token

against eth well that just means that it's only going to go up because it's people flying profits from eth into other tokens and kind of speculating it's not actually going up based on fundamental value whereas if i see a coin that's actually leading eth and it's actually being trending up against eth and doesn't just follow eth in price movements or whatever then i'll kind of like look at that more closely and stuff like that but that's more kind of the trader side of things uh and you know i've said it before like on the in on the refuels in the discord channel generally it's just so hard to outperform eth and i mean this is an investment investment advice of course but i just personally i find it very hard to hold most things against eth because i like to hold things for a longer

longer period of time especially because of tax reasons like getting that kind of capital gains tax discount after a year um and things like that and also the headache of having to manage too many different assets is just ridiculous because i mean you say you're holding like 10 different things um that you kind of keep track of and trying to decide okay when do i take profits on this you know what are the tax implications of this all this sort of like i have my spreadsheet and i was looking at it the other day because i was doing my taxes and it was just a nightmare like because during obviously the last few months you know with d5 summer happening i did a lot more kind of like the trading activity than i normally would and i was just like you know it's i know that kind of like the reward

is there but the risk is also high and the overheads are high so for me i stick mostly to just kind of eat for that reason but i also think that's why a lot of things trend down against ether the long term because i think a lot of people have the same kind of um uh the same thing line of thinking where they're like you know they're only using these things to stack more eath because they know that eth has a much much higher chance of being around in the future than uh most of the d5 projects i mean besides the the quote-unquote blue chips like maker are there uni swap and a bunch of others you know that you can have relative confidence that they're going to be around for a while there are not a lot of projects out there that you can definitely say

okay well i'm happy holding this for like five years or even happy holding this for like two years so that's why i think a lot of people just choose to to buy eth as like a kind of an index bet on the entire ecosystem where it's it's basically giving you exposure to anything happening on ethereum so if the default projects grow well then you know ethy assets should grow with it and it's you know post 1559 when we're actually burning eth from the fear revenue then it's definitely going to grow with it because any kind of action that's happening on ethereum any d phi app that gets traction is going to be burning each technically because anyone doing transactions with that defy app is going to be burning eighth so i think that that makes ethan even more attractive asset for people to hold as an index because

they're like well you know i uh why would i hold like individual defy tokens and try to speculate and have to like do you know all these countless hours of research and have to do all these kind of um overheads and deal with all the tax implications of it when i could just kind of hold eth and now don't get me wrong like i don't think it's it's it's wrong to go and kind of like seek alpha elsewhere like i'm not saying that you should only buy ethan that's it um but generally it's just much harder to both outperform eth and to find something that actually uh that you have conviction on because it's not just finding something that outperforms eth it's also holding it long enough to to experience that because you can say you can hold an asset for like a year that is underperforming eighth and then

say you sell it and then a few months later it just for some reason it wakes up and it starts massively outperforming eth well i mean how would you i've known that right but also you you selling it means that you didn't really have conviction in in kind of like in the first place or you're just trying to cut your losers and go back to each sort of thing and you know i've seen this countless times i've seen many people throw away lots of eighth by doing this um and i just think generally for a lot of people that can't spend every you know it's not their kind of job to be an investor buying like buying eighth is kind of like the easier option for them and this is i mean this this isn't even unique to crypto look at the how people invest in the stock market a

lot of people just buy index funds because one they don't have the time to look at every new kind of stock coming to market or they don't have time to look at the financials or the quarterly reports blah blah blah blah all this sort of stuff no one has time for that unless it's their actual job to do it or unless they enjoy doing it on the side um and you know and that kind of same principle applies to crypto but it's actually like much more magnified in crypto i believe because there's so many scams there's so many rug pulls there's so many projects that will look like they have traction because the market's hot and then a couple months later they'll be just dead completely and there's so many people trying to convince you to buy their bags so you know compounding all that

together maybe i went a little bit off topic here but when i kind of look at things performance against eth and i see most of them are down against eve even defy tokens it's it's because of all those reasons at the end of the day and i think as time goes on and more and more people kind of clue into this it's just going to get worse over time and that's not to say that you can't invest in in kind of default tokens and make an outperform eth you certainly can but if we're talking about long-term investing here it just becomes very very hard hard to do so um and you know and the more kind of mature this ecosystem gets for better or worse a lot of these teams are just going to go the private funding route where they're not going to do

any kind of like public token sales or they're going to kind of their tokens are going to open at like a really high market cap or whatever um and you know all the value have been sucked out of it this is kind of like what happens with stocks where um you know early stage companies get funded by vcs and and hedge funds or whatever uh through multiple rounds i mean in crypto you it's rare to see like a series b or a series c round in crypto but in like the traditional kind of web 2 world or whatever you want to call it the the equity world these kind of like companies and teams will go all the way to like a series e and sometimes even further than that before they go public so by the time they actually go public pretty much most of the value has been

psyched out of it and at the end of the day trying to kind of like find the one that's going to outperform an index just becomes stupidly hard and i think that's what's going to happen with crypto as well unfortunately as time goes on but in saying that crypto has a unique position where i think a lot of um a lot of teams are going to start launching as dow first and they're going to be making sure that they get tokens into the hands of right of the right people um and kind of like uh not not kind of like taking lots of money from vcs and funds instead and kind of like taking it from the community but that's a whole nother thing and maybe i've gone off on a little bit of a tangent there but just generally um you know i mean to answer the

original question i just used trading view and chart x to track it against eth but a lot of the time i don't even bother looking anymore because i'm not really holding much against eth i'm not really holding much other assets besides eth right now i mean i'm happy to kind of like say what i'm holding besides eth in terms of like actual kind of i guess um uh substantial amounts that aren't like little things obviously i don't know whoever's seen it like the git coin airdrop that i got that was a sizeable air job i'm still holding 75 percent of that i i sold 25 of it um and uh other than that uh index the index co-op token because i'm really close to the team i know how much they're doing there um snx um rv and wi-fi i think are the ones that i'm holding

um but even those like i bought those like super early on in their live and even those haven't outperformed that much and you know it could be considering how much risk i took buying into those instead of eighth you know you'd expect them to outperform either by a lot more and if you go look at the wi-fi eth chart it looks disgusting like i bought i bought wi-fi like pretty much one of the first days it was out and i still haven't outperformed it by that much um so yeah from that perspective like the way i'm kind of approaching it now is i just kind of like you know keep stacking ethan and things like that but at the same time my position is unique everyone's position is different i mean i have a lot of angel investments that i've done which are which are

private kind of like seed stage investments um that you know that money has gone into there instead of like public markets so to speak so uh it just depends on your individual situation and you know the funny thing is like i see like a lot of uh people that start off with maybe like say you start off like just a few thousand dollars in crypto they're the ones that are going to uh try and try and kind of like um gamble i guess you could say or kind of like be more speculative on these other assets because they're trying to grow their pie whereas once you've already got the money and you go into like wealth preservation mode well you're not going to preserve your wealth and some highly speculative defy tokens if you want to stay in crypto and still have exposure to it

well you're going to sit in btcl 8 at this point right you're not going to sit in anything else um if you want active exposure to crypto without the massive amounts of risk that comes along with that so hopefully that answers uh your question marco 47 um and gives a bit of color there for everyone as well and on how i think about assets against ethan generally the long term kind of you know how this space will evolve long term on an investment basis all right if if there's not one from the audience i'll just keep moving through the list here all right one here from arthur k who says how to find work in the ethereum

ecosystem i have no technical skills and i am not a programmer i worked for three years in a crypto company as the head of the support department i'm interested in working as a researcher and in general any useful work for the community i am a very big ethereum ball and believe in a decentralized future so i want to help the community and at the same time stack more eth in the process so refer to my earlier answer um from before uh to apollo about kind of working for dows i won't go through that again um but in terms of maybe you know hitting on your kind of point here about wanting to kind of work as a researcher um specifically i mean it's actually i wouldn't say it's easy to be a researcher in this space but it's very easy to kind of like get

involved as a researcher because all you have to do is start publishing stuff um for example like a lot of the researchers that i know within this ecosystem they literally just started kind of like publishing content on each research on medium on sub stack on reddit you know the different sections and they kind of built a name for themselves over time uh one of the the top researchers in this space hazu he did exactly that that's how he started he was not like he came into crypto like with a fresh start and just started kind of um writing things and putting really great um novel research out there that people found really interesting and some of his pieces are some of my favorites in in this ecosystem um and you know it's not just him there's a bunch of others out there i

mean vitalik even still does it right where he'll just put out blog posts with fresh fresh research or he'll go on etheresearch and do it there he'll do it on reddit uh so if you wanted to get started as a researcher literally all you have to do is just start publishing stuff and you know i i guess like the hack would be to focus on things that people aren't covering too much yet and that's why you actually see a lot of people flocking to to mav right now because mav is such a kind of like open space and there's a lot of research still still to be done there so you typically see a lot of people basically going okay well this is interesting i'm going to start writing about it i'm going to start explaining it to people i'm going to start educating people

about it um and kind of like working on it and working in this arena like the flashbots team has a bunch of core researchers there obviously you have like um paradigm which i mentioned before which is a big fund that has a lot of researchers there they all pretty much started in the same way they just started publishing stuff getting their name out there building a name for themselves and that's really how how you get involved in the research side of things but if you want to do like any useful work for the community it's the same kind of path i mean i started in the exact same way where i just started kind of like with a humble crypto newsletter in early 2018. it was literally it had like 200 subscribers for months until uh late 2018 when i started ether with eric connor uh and i just kept like

you know grinding it out kept doing stuff on twitter building a little bit of a name for myself it was a grind don't get me wrong this stuff's not going to come easy and you know especially the ecosystem is even bigger now so it is kind of hard to get your name out there but i think that the hack to get your name out there is to just focus on things that not many people are talking about but are interesting because you'll see like to use the mav example again you see how much attention is on mev right now and how how many there's so many accounts on twitter that i'm seeing that i haven't heard of before that are just popping up because they're doing good mav research so that's a really quick way to get your name out there and if you want to grow like a twitter

account the biggest hack ever is just to do twitter threads seriously do twitter threads tag a few people in them i get tagged in them all the time but tag a few people in them for feedback and then if they reply it bumps up your tweet thread to everyone else's feeds they might retweet you if they like the thread and kind of like the um the post and then eventually they may even follow you which basically starts building your legitimacy within the community and then what ends up happening is that the more and more threads you do the more the more and more of that kind of stuff happens and then people go to your profile and they say oh wow this person's followed by such and such and then you you start building that legitimacy within the community and that's how you kind of like start

getting a name out there and that's the same path that i've seen everyone follow in in crypto on on twitter especially it's just that building up that kind of legitimacy doing it via kind of like education and explaining things to people that they may uh kind of like not have a really good grasp of and twitter threads are a really great way of doing that's how i started i mean my twitter i don't do many twitter threads these days but during 2018 2019 i did a lot more threads and that's how i got a lot of attention of other people that i respected and then it kind of like snowballed from there and obviously like i did a lot of other stuff around that too like started ether when i mean ether was the first um i think like one of the one of the very first media

company companies within ethereum um there was no bank list there was no defiant um there was a few newsletters and stuff out there but like in terms of one that was focused specifically on ethereum uh we had like the the website going with um a bunch of different uh educational materials we had the newsletter and the podcast um we still have all that of course but you know there was kind of none of that so that's kind of like how i how i did it so if you're looking to kind of like work in the ethereum ecosystem that's really all you need to do is just like um you know maybe i'm simplifying it by saying it's all you need to do you do need to grind out but the thing is that if you focus on the right things you can kind of leapfrog

um that grinding process and kind of like push yourself along by just following uh by just focusing on things that people are really interested in like the research side um and and kind of like education in general so hopefully that answers your question arthur um but yeah generally it's uh unfortunately if you yeah i mean because this ecosystem has gotten a lot bigger since those days as well it just becomes harder and harder to get your name out there and to stay relevant too i mean you know even it's funny like this might be a little bit personal but even sometimes i feel like i'm i'm kind of like slipping away some days where i'm just like god am i even relevant anymore does anyone even care what i have to say anymore because this ecosystem is just growing at such a a rapid pace and

you can get overwhelmed at times but generally that shouldn't be that shouldn't stop you i think there's still plenty of opportunity out there i think that the ecosystem getting bigger also works in your favor because you have more people that you can reach with your research and you have more of that network effect that you can grow as well so yeah so again hopefully that answers your question arthur um i'll take another one uh from the audience if not i'll keep moving through the list it's kind of technical but do you know the advantages of using a newer version of solidity versus like a really old version uh i don't think i could give a good answer to that as i'm not a developer but um from what i can tell a newer version would you know

generally fix bugs with the language or some kind of um you know intricacies with it that would maybe annoy developers or something like that um yeah i'm not sure and it could break things too from my knowledge where newer versions um don't always fix everything they could introduce breaking changes but um i would uh probably ask a developer forum um for that there's actually a discord channel called crypto devs that's quite active that might be able to answer that in more detail for you thank you no worries all right on to the next one from the sheet here from java lasers who said you mentioned on a daily grade that you stake every time you accumulate another 32 eth this implies that you're running your own validator rather than using some sort of pool or liquid staking

protocol are you running validators from your home using a using a hosted service or of some sort or using a hosted hosting service of some sort so i'm doing it from home uh right here for those of you can see my camera is my staking box this is not my main pc this is purely dedicated to ethereum staking all my validators are running on that bad boy um and that's basically what i do i stack on my own it's uh i mean i know this is a little bit sacrilegious to say but it's it's currently just running windows um i should be running kind of like linux or a distribution of that um rather than windows but it works fine on windows like i'm using the prism client and it works uh quite well um with my kind of setup here and it's not like a super beefy machine either

it's only like a like an i5 and i think i even went overboard with it i mean um you know it it it kind of like with that e3 staking you don't need too powerful of hardware there but yeah i'm just doing it all on my own instead of uh staking with a service and that's i mean the major reason is because i have those 32 increments that i can put into staking i know a lot of people don't because 32 these days is a lot worth a lot more than when i bought it back at 100 or even before then so um you know there's plenty of people obviously that are using different service providers and stuff like that but generally i mean i always advise people if they have the 32 eth and they're fine uh locking it up until the you know the merge happens or whatever

then i would stake on on your own um because it's just like so much better than uh and so much safer than staking with a service provider i'm sure a lot of people have seen all of the the issues with these service providers lately some of them have lost um all the all the eight that were staking uh for one reason or another some of them kind of like get slashed and stuff like that so there's a lot of that stuff going on um but uh generally uh yeah i mean that's that's kind of like what i do i just stake everything that i i mean i'm staking most made not all of my eighth right now but most of it is he's kind of sitting in there um in in the 32 increments um on my own on my own hardware and because i can control the whole experience too

like no one has control over i'm responsible for the whole thing um and you know i'm responsible for if it gets slashed if i go offline if it needs to be upgraded whatever and i actually like that i like i never mind or anything like that i never mined any crypto uh this is the first time i've actually participated directly in the consensus of the protocol uh and you know i'm actually really excited about doing that so yeah i believe that answers your question uh java lasers and maybe i'll add that like if you don't have 32 ether you want to use a staking service provider i mean i've i've said this before on one of these amas i basically said that there's a few different options you can choose from and if they have different trust assumptions if you want to go like the

totally centralized route and you don't really care um you could do it to an exchange of course but i wouldn't trust every exchange i personally wouldn't um put any of my funds on binance for example but coinbase or kraken would probably be fine if you wanted to stake to an exchange if you had to uh but again like i have a i kind of like heavily recommend staking on your own um but then you know the service providers there's something like lido as well which is quite popular um and then there's rocket pool coming out soon tm like no one knows when that's coming out it's been it's been coming out for quite a while but that's like aiming to do a decentralized staking pool service for people who don't have 32 ether as well so those are some alternatives there but

uh generally as i said my advice is always if you can stake on your own uh it doesn't take too much to set up you don't have to build anything fancy you can even run it on your home pc as long as you're happy leaving it on 24 7 um so that it runs in the background uh you know that i mean it's funny because i say that like it's something that's that's alien i think you know i mean depending on what you have if you have a home desktop pc you might put it to sleep at night when you're not kind of like um using it but i think a lot of people like are using their pcs a lot these days so um you know that extra little bit of electricity cost uh would probably be worth it for the rewards that you're earning

uh if you're staking on your own as well so hopefully that answers uh that question there for you java lasers i'll take one from the audience now and otherwise i'll just move through the sheet is it a full node or are do you just using fura uh i i use a full node yeah i run an eth1 full node as well yep which actually i should say everyone should be running their own eth1 full node if you can as well but it's it's like a two terabytes now or how big is it no i mean i didn't i haven't checked it lately but it's not two terabytes for a just normal full node and if you run um turbo geth or it's now known as eragon it's even less than that it depends what mode you run it and you can write it in

like fast sync um or kind of like uh snapshot mode um there's different kind of modes where it'll kind of bring you up to speed and then continue the chain on from the tip and then it'll get bigger over time but no it's not two terabytes for a full node um an archive node is definitely in the terabytes but you don't need that to participate in just like um staying on on any kind of like consensus with the network cool cool all right uh so there's a kind of like i guess this is like a lot not a long question there's a lot here from lucas who was basically talking about cardano i'll try and um summarize this to what his question is basically asking

what my thoughts on ada versus eth is um and he's got like a bunch of different points that he that he put here basically saying that he went and did some kind of like research into cardano and kind of like wanted to get out of the eighth bubble and see what cardona was all about and he didn't really find anything too promising he says yeah most of the sources uh that he found in different research reports and stuff is just uh charles hodgson spreading hopeium and trying to grab attention um secondary sources was 95 of the content uh maybe paid influences with two to four month track record history and crypto aka cardano ambassadors 90 of the investors fans seem to be retail investors which only information sources

is charles and these other ambassadors and stuff like that um and uh yeah and then he links a video that was funny i watched this video where one of the ambassadors was stating that it does not have smart contracts even if they did they do it it isn't a big deal blah blah blah and then he says i think there is still a lot of dumb money in the market so yeah what are my general thoughts of cardano versus ethereum well first of all yes i mean there's always going to be dumb money in the market i mean generally uh i'm i think that markets are always i mean they can't function without dumb money i think i think someone always i mean it's not as markets aren't a zero-sum game where you know um just because someone wins someone else uh kind of loses

but uh you know there's there's always going to be losers and winners right so i do think there's always going to be down money in crypto or in markets in general and you kind of like need that there for markets to function for one reason or another um and obviously a lot of this dumb money is chasing marketing basically they invested in things based on memes and marketing uh rather than fundamentals uh which i mean that doesn't just play out in crypto and we've seen this play out in the stock market recently with uh with amc and gme and all that sort of stuff so that's definitely going on but i guess so the core question here are my thoughts of cardano versus ethereum really i actually think i don't know is a joke if i'm being honest i think that it's the fact that i don't have smart

contracts in 2021 is a joke but that's not their only joke i mean that's that's that's an overused meme at this point i think uh even though there's truth to it i just think generally um it doesn't really have anything interesting to that that that kind of like would mean that it would be the theorem in any kind of way on any kind of point it's proof of stake and sentence mechanism is depos it is kind of like not uh any in any way comparable to ethereums um as i said no smart contracts you can't compare that um i don't think i don't believe it's decentralized because they're using depos i believe that uh i mean not just because of the the consensus mechanism that they're using but i believe that uh the entire project is centered around charles if charles was to disappear the project would pretty

much fall apart i believe um i don't know anyone else who's working at you know iohk um you know there was a couple people that were working that left that i knew of um and i hk is the main development firm behind cardano for those of you who don't know um i think that uh there is some interesting kind of like tech that they're working on but a lot of it is just research papers it's not actual practical tech they seem to be stuck in a spiral where they just love just doing peer-reviewed research i know that's another meme but they love doing that they put out so much research papers at the end of the day like it's just research like it's just a paper like you need something practical that people can use 99.99 of people aren't reading these papers they don't care what they say

they just want to use something um the kadano is competing against every other ethereum competitor um i don't think it's competing against ethereum i think it actually has to prove itself against the other competitors before it can compete with ethereum um no developer that i've ever met in my like four years of being in this space or over four years now um has once said to me that they're planning on building on cardano so that's a that's a kind of pretty big deal as well um so generally i just i don't know like i i i don't i'm not gonna say that i think cardano is like scam or anything like that i don't i don't really believe that it's a scam i believe that it's an extremely ill thought out project i believe that it's charles's baby that he created because he feels like he was um sidelined uh

from ethereum uh and uh i believe that it doesn't really i don't know what's i just believe that it's not really going to go anywhere i don't know how they're going to be able to catch up to the network effect of of the other kind of like ethereum competitors out there let alone ethereum itself because you can't come at the king without killing everyone else around you before you you know you you kind of like combat ethereum and ethereum uh just keeps growing its network effect ethereum hasn't stagnated um yes okay eth1 is quote unquote old technology but it doesn't matter eth1 is still being used more than any other chain out there and the hilarious thing is that any of the chains that have got an adoption have just been versions of ethereum bsc is just ethereum with like cz at the helm uh polygon is

uh i guess like i'm not going to call it totally centralized or anything like that the pos chain but it is a more centralized version of ethereum right it's just got more block space things like that um so when you kind of look at those things as the things that have gotten uh kind of traction you just see how powerful the ethereum ecosystem is how much network effect there is and how it just all comes home to roost at ethereum and i i think that cardano is not going like from what i know they're not going to be evm compatible or anything like that so they're going to try and bootstrap their own ecosystem if we look at the other chains like polka dot and solana doing this there they have a little bit of an ecosystem going on but i mean solana is backed by ftx or spf with the

biggest kind of like exchange um sorry one of the biggest crypto exchanges they're bankrolling the whole thing um they're trying to kind of like bootstrap a kind of an ecosystem there um uh polkadot's backed by the web3 foundation and everything like that but from what i can see perko doesn't have much traction either right now so when you're kind of looking at the whole landscape like that i just don't see a world where something like cardano does anything kind of like special or novel like okay maybe their tech ends up working really well and all their promises weren't just promises they deliver on them whatever but it's just gonna be too far gone like there's i just as i said i just don't see how any of how cardona is going to catch up to any of the other platforms let alone ethereum

so hopefully that that kind of gives you some color there i try not to be too ranty about it but i get i kind of get frustrated about projects like cardano because i have you know a lot of the fan boys come at me and they say you know who's going to kill ethereum and i just think to myself i'm like like i don't even know what to reply with because i just think in my head i'm like how can you not see that um the network effect that ethereum has over cardano and i just think it's because they really just listen to charles like if you go to charles's youtube channel he's a really good talker like he can sell he'll sell ice to an eskimo like he's he's like the jordan belfort of of crypto i believe um jordan balfour being the wolf of wall street

um because he's just very good at convincing people of things and for people who are newer to the ecosystem who have no priors have absolutely no knowledge of what's going on in the past they're going to believe what he says because he looks like a good actor he sounds like he sounds like someone who's smart knows what he's talking about which to be fair he actually does know what he's talking about when it comes to this sort of stuff but he goes astray when he starts kind of like i guess putting the idea into people's heads that ethereum has no network effect that ethereum is very easily it can be very easily overtaken that ethereum is crappy technology so you know we're going to karen is going to beat them or some other chain is going to beat them i think that uh that's why you see a lot

of the retail investors fall for it it's just because charles has a very good way of convincing them of things and you you know i'm sure like some of you have seen his youtube videos i'm probably not alone in thinking that um but yeah generally that's kind of like my whole view on that ecosystem um and i just don't think it's going to to amount to anything over the long run all right i'll take one from the audience if not moving through cool is there any limit i don't think there's a limit on the channel um there shouldn't be right now i'm seeing people coming and going but um let me just check the general channel

quickly and see if there's a limit yeah there is a limit at the moment it's 25 people oh wow why i changed it that's weird yeah it should be it should be 99. hmm i'm looking at the settings right now and it says 99 if i said maybe i'll just set it to lower than 99 i don't know if that's going to change anything not that's that's super weird hmm damn it's quality not quantity mate yeah i know for some people unfortunately uh yeah i can't get in because the channel's maxed out damn i thought i fixed that that's weird because it said 99 out of 99 um before this started but

oh well um it's being recorded so people can go can go watch it when uh the the recap of it on youtube anyway but i won't spend too much time on that i'll move on to to the next question here uh so this one comes from ghostess ave again where they ask simple question how exactly does sharding work so i'll just give a higher level kind of overview of sharding as in the ethereum context there are kind of different approaches to this but in the ethereum context there's two different types of sharing there's data sharing then there's execution sharing so i'll focus on data sharing because that's what's going to be delivered um for ethereum as part of the e3 roadmap execution sharing is like a 50 50 if it's going to actually come along if we actually need it but essentially shouting is is the

notion of just breaking up the blockchain into kind of like different shards so you can think about like this there's going to be 64 shards initially on eth2 those 64 shards are just going to be 64 versions of ethereum so 64 different kind of blockchains um like we have today like on eth1 um and and that's how you increase the capacity because you can imagine say for example eth1 has like 15 transactions per second today on layer 1 you would have 64 times 15 transactions per second that would be the extra scalability from uh from shouting for for data sharding not not kind of like execution charting here um and that's that's um implying that the gas limit on these shards is going to be the same

or the block size is going to be the same as it is on eth1 it could be more because we there's another thing called stateless clients or statelessness coming to um eth2 as well that will allow us to raise the gas limit and there's other improvements that are always coming and stuff like that but that's generally how it works and you know this isn't just like an ethereum concept uh database sharing has has been around for ages like it's it's used um in kind of like uh massive data warehouses and like i mean all the kind of all the big databases use this they should they kind of shout out the data um and and that way they can kind of like get more throughput because they're scaling horizontally instead of vertically you can think of like um vertical scaling as layer one layer two

horizontal scaling is like layer one but like breaking it up into different parts right like having 64 different shards which is 64 version different versions of ethereum so that that's kind of like the high level of how sharding works now when i say data sharing what i mean is that um you can store data on these shards but you can't execute them which means that there's no virtual machine that kind of like runs and processes the code on the shard so you know how on eth1 we obviously have the ethereum virtual machine that runs and processes the smart contracts and all the code that goes along with that with the data sharding you don't have that you just have a data layer that layer twos can tap into so what ends up happening is that layer one becomes the um the chain where layer two proofs go on so when layer 2s

want to secure themselves with ethereum they have to post proofs to layer 1 uh and as transactions and that's what they'll do with sharding and then they can uh that that's how they get the extra scalability so um the easy way to think about it is that 15 transactions per second times 64 again so say um that's 15 times 64 and then uh times whatever it is on layer two so so it's like 64 times uh 10 000 transactions per second for example on layer two uh and then you get like sixty four thousand uh sorry more than that you see that 240 uh thousand transactions per second sort of thing but there are a lot of other things that go into this um there's that's how you get like millions of transactions per second on ethereum that's how kind of like the scaling

works but there are a lot of other details that go into this it depends what layer two you are it depends how many different layer twos are talking to ethereum's um layer one there's there's a lot of different things that go into that but at a higher level um that's how it works um uh how data data sharding works and there's a post from battalic on this called a rollup centric roadmap for ethereum um you can go read that that basically does a really good job of explaining it as well and then the second part is execution charting which i mean as i was talking about before we have on eth1 an execution environment called the evm this would basically be putting the evm on the shards i mean if you want to think about it that way so you could execute the code in smart

contracts at layer one instead of having to do it at layer two um but you could do it at layer two as well but you could do it at that layer one two but the thing is to do execution on shards it's actually a lot more complex than to just do data it's a very hard problem it hasn't kind of been solved yet still in very heavy research and it also puts more strain on the beacon chain the uh proof of stake beacon chain the consensus mechanism so the researchers and engineers are basically tossing up is it even worth it because it you know who cares if you get like an extra 15 transactions per second times you know 64 on each of these shards when these shards are just gonna be filled up with layer two proofs anyway so why not just use the shards as data

layers for the layer twos and then just scale via layer two so we can preserve the decentralization of ethereum and we can make sure that the beacon chain doesn't have too much overhead that it has to process to secure the network as well so um yeah i would just focus on data sharing execution sharing is is if it ever comes to ethereum it's pretty far away i expect data sharding could be you know i mean timelines i'm not going to give any hard timelines here i don't know of any hard time lines but we could see it sometime next year um but you know it could be pushed to 2023. these things are kind of like hard problems they're shining in blockchains has been done but not the scale of ethereum and as i said there's different approaches i know um there's a another project i think it's

near that does it um and then there's zelika zeleko i think that's how you say it zilliqa i think um that would do it as well but i think they have different approaches and they're obviously you know nowhere near as decentralized as ethereum and stuff like that and they they're obviously um using different consensus mechanisms as well i believe too and there's all these other intricacies that go into it so hopefully that answers your question about what sharding is from a higher level there's a lot more that goes into it but that's essentially what it is just splitting the kind of blockchain into different parts um and so that we get that like more scalability at layer one um but as i said there's two different types data and execution data is what ethereum is focusing on right now execution we might get in the future

all right uh anyone in the call feel free to ask a question all right if not moving through the list uh i do see your questions in the ama series channel guys but i will be answering those at the end after i've gone through this sheet here actually wow i have a fair few left to get through on the sheet here so i'm gonna i'm gonna just power through these if you do wanna answer uh sorry if you do wanna ask a question you can just interrupt me and ask it or ask it in the ama series uh channel on the discord but anyway one two one from xerox calvin who says uh something i have been wondering is what risks are there with holding assets on the polygon network i've heard warnings

from advocates like chris black on the nature of controlling uh five of eight multisig curious what kind of events we need to happen for an entire rugging of thematic network so i mean this is correct there is uh the bridge that you know the the bridge that you send your assets to to get to polygon from ethereum is controlled by a five of eight multi-sig so if those if five people colluded to steal the funds they could right they could basically sign the transaction steal the funds do whatever from there right uh but the thing is there's a few different kind of like uh i guess nuances here one all of the multisig uh signers are known they're all very public people uh within defy uh you know some of them are d5 project founders uh some of them are matic you know there's this kind of like

they're all pretty much known there's actually a god i don't have the resource handy now but there is a resource out there listing them all and listing their whole process with all the addresses and things like that so that's one aspect of it the the second aspect is that um because of that i guess like because of them being so well known uh i don't think that they would uh i guess like attempt this themselves but i do think that there is a risk that their keys could become compromised and someone did like some fancy attack where they they stole the funds out of the bridge that could of course happen i think there was a time lock on it though um on that bridge as well so um maybe you know when once the transaction goes through it actually takes like 24 hours for it to

execute i'm not exactly sure if there is a time log but i believe there is but um yeah so those are like the main concerns there so yeah definitely uh those those funds i guess could be considered like pretty much centralized i mean a 508 multistick is not decentralized let's be honest so any of the funds in that bridge could unfortunately be um be stolen by those those multi-stakeholders if they wanted to now um and on that note as well i would say that the polygon team has expressed that they are planning to get rid of that multisig eventually the reason why it is in place is because they want to make sure that the bridge is um functioning fine um so that it you know in case something does go wrong with the bridge they have a way to fix it and have a way to kind of like um

uh uh kind of alter it or or upgrade it or do whatever they need to in case something goes wrong but they also want to upgrade upgrade the bridge as well in case they come up with better bridging kind of architecture or a better way to do the bridge or whatever kind of like from that point of view as well so yeah that's definitely something that everyone should keep in mind about bridges in general like all types of bridges um whether they big layer two bridges or side chain bridges uh you need to keep in mind like how they are secured are they secured by the ethereum main chain or are they secured by a multi-sig for example on polygon there's actually two bridges there's the uh there's one bridge that uses the plasma chain as the bridge sorry the kind of like um it uses plasma

as a bridge from ethereum to matic but that's a much longer bridge i think it's like a seven day withdrawal period or something like that and then there's the bridge uh that i was just talking about the multisig one um which is much faster so that's the trade-off there if you want the full security of ethereum you can use the longer bridge to get your assets across but uh you know most people don't want to wait a week for their assets and things like that like i totally get that so there's that aspect to it as well and then there's other bridges that go to uh between networks like the cross chain swap protocols that you're seeing it's always good to see how they're kind of like handled as well i know for a while ren protocol or ren whatever they're called these days had uh had had a multi-sig on

where the funds were going to through the bridge as well so that um i guess like the people could rug if they wanted to whatever so generally just a good idea to keep an eye on the bridges and and kind of like see uh who's controlling them if it's a multi-sig if it's the ethereum main chain you know how much funds are at stake how much funds could be lost and all those sorts of things um and it's not just the bridges as well just smart contracts in general like a lot of smart contracts have admin keys and upgradeable contracts things like that because they're early stage projects and the developers want to make sure that they can upgrade the contracts um but i think generally uh when you're kind of looking at that sort of stuff you just unfortunately have to trust that the

team's not going to rug you at the end of the day like that's all i can say i can't sugarcoat it you know there could be a chance there's always the chance it's not you know it's not a high chance but there's always a chance there so hopefully that answers your question uh about the polygon bridge and i mean specifically around bridges in general too so amal asks what is a good nft project in order to get involved and learn more so there are so many nft projects and it is really hard to find ones that are actually legit um that aren't scams that have staying power that have a good community i mean i've seen so many come and go over just the last few months it is really hard so i can't actually give you a good nft project to get involved in because i

don't know myself it's actually very very hard to um to do that so i think from my point of view the way i would approach it is find something you're interested in and just take a bet on it right like if you find an nft project that you're really interested in and you think has legs and and you know the community seems fun take a bet on it get involved uh see where it goes you know there's maybe a high chance that it just amounts to nothing it doesn't have to be a scam or a rug but it just could be something that has a bit of hype and then the hype dies down and goes away there's been plenty of that going on with nft projects but that's just the risk you take and that's not just exclusive to nft project that's that's pretty much every project you

have to take a risk you have to take a bet that this project is going to be around for a while and isn't going to basically either be a scam or just something that people lose interest in so yeah sorry that couldn't give you a better answer than that but generally it's just it's very hard to find um you know good good projects in this space good lasting projects just like it's very hard to find uh good lasting businesses right like nine out of ten businesses fail it's just the the nature of these sorts of things and just ventures in general all right one here from uh mr hoddle who says what are your thoughts on how fragmented liquidity might play out with so many l2 solutions coming and existing and other existing solutions and chains do you see any concerns or risks to ethereum or in

general that may be in play due to liquidity being too thinly spread so i i mean i've spoken about this a lot on the refuel i think um but basically i don't see any kind of like existential risks or like concerns or anything around this fragmented liquidity i think there's already solutions out there like connext and hot protocol and seller network and starkware's even building some stuff around this where the they either bridge the liquidity they have cross-chain swaps they have ways to tap into liquidity on other chains and like kind of like pull it into their chain you can think of layer twos as another chain just secured by ethereum instead of secured by itself um so yeah i don't think that there's gonna be much of an issue here i do think there's going to be a bit of a liquidity war for a little while with

token incentives flying everywhere on these l2s and people you know people sometimes say to me it's like oh how are these l2 is going to get liquidity i mean there's going to be token incentives from both the projects deploying on there and also from the l2s themselves they will have tokens you know i can pretty much guarantee that uh so there's going to be a lot of that going on but long term i just think that the because liquidity can move so easily between different things and because we're going to be able to tap into all this liquidity through bridges and through other kind of means i know starkware's doing a lot of work on this um i just think that it's not going to be an issue i think it's going to be something that gets abstracted away people are not even going to

know where they're getting their liquidity from they're just going to know that it's there and they'll be able to do what they want to do on layer one layer two side chains which are layer ones technically or anywhere wherever you are basically i think the liquidity is gonna be there thanks to these tools like connext and hot protocol and salo and all the other ones that i mentioned as well all right one here from patrick who asks what's your routine to stay up to date in the ethereum ecosystem what specific sources do you follow um so the sources that i use the most i mean i guess like the one that i use the most by far is twitter uh like that might be obvious considering the refuel has pretty much like all twitter links whenever i'm doing it uh that is the easiest way to keep up to

date with everything from what i've discovered i spend no joke like one to two hours every morning catching up on twitter following through all the links and and kind of like seeing what's happened overnight but that's just me because of where i am in australia everything happens while i'm sleeping so i have to actually um catch up in the morning but um twitter is the number one source other than that i follow a lot of newsletter newsletters i'm pretty much subscribed to every single newsletter um in crypto that is ethereum or crypto based um there's a lot of other newsletters like bitcoin users or whatever i'm not subscribed to those things um but yeah ethereum all kind of crypto uh general crypto newsletters i'll subscribe to uh i'll go through those on the weekend so i'll let them pile up during the week and then i'll just kind of go through

those and see what's happened um usually i've covered a lot of it already uh with uh by going through twitter or i've seen a lot of it already by going through twitter um or anything like that but other than that there's also podcasts i mean i don't i don't listen to podcasts to keep up with things i listen to podcasts for um just interviews with with interesting guests and stuff like that um i in a lot of chats a lot of group chats with different projects a lot of group chats with friends and just people in the ecosystem that i talk to all the time they keep me up to date on things uh given that i'm a prominent community member i get people just sending me things all the time and updates on things all the time so that it kind of just comes to me

so i'm in a unique position there but yeah generally as i said like twitter and newsletters is like the two main sources that kind of everyone has access to um and that's kind of like where i get most of my information from i actually don't watch any crypto youtubers except uh benjamin cohen sometimes who's a trader he's not a fundament i mean he knows his fundamentals but he doesn't do like ecosystem updates or whatever he um does a lot of trading stuff um but yeah i don't watch any of the other youtubers really sometimes find maddox because they have really good videos um explaining things really simply um but yeah i wouldn't know which youtubers to follow besides myself for kind of like um updates they are bankless i guess you could say but bankless isn't a youtuber they're like a whole ecosystem but yeah definitely

watch bankless kind of interviews and stuff as well on there so yeah hopefully that answers your question um yeah there's a lot of noise out there unfortunately and twitter's can get pretty noisy but i enjoy it i actually enjoy reading through all the all the noise as well um not the noise of people pumping coins or whatever but just like going through all the threads and seeing everything branch off and people kind of like talking to each other and you can find a lot of gems in there as well so yeah curating a good twitter follow following list is is pretty critical i would think as well all right uh one here from shaw man who says how do you think mav will play out among stakers staking pools post merge open question i am not going to say i have the answer to this one um

but i will say that i think that unless something fundamentally changes mev and proof of stake is going to be similar to mav and proof of work uh and with staking pools and stuff like that there was that whole thing about reorgs that i went through on yesterday's refill episode or friday's refuel episode um where i spoke about how this guy named edgar put out a piece of software that will basically allow miners to use it to essentially do what's called a time-banded attack which means they steal mev from other miners so the way this would work is that the miner would see that there's a bunch of mev in this block and then they'll um and they say okay well i want that mev so they'll work to re-org the blockchain and uncle that block that was mined by the other miner

so they can extract the mev instead of them and that's what's called a time-banded attack now why people think this would would um lead to instability of the chain is because you can imagine that it doesn't just stop there what if every miner is fighting with every other miner to re-org every block you know every time a block is real they real good again because they're like well no that's my mev it's kind of like this tug of war of just like constantly re-ogging the chain and that you never get to like um uh you never get to consensus on what's actually real and you then the chain basically kind of kind of essentially stops in kind of in place so you can get that playing out that's the same thing in proof of work than it is in proof of stake but i spoke

in detail on the on friday's refuel about why i think that this sort of stuff's not going to play out a very low chance that it's going to play out but the other stuff with mav just the general mev stuff besides the real stuff the front running the sandwich attacks all that sort of stuff that's still going to be existing in proof of stake unless something fundamentally changes and on that note as well the real stuff while it will exist in proof of stake it's actually a lot less um less worse and there's actually a maximum limit to it because in proof of stake we have what's called economic finality so after 12 to 13 minutes the chain actually becomes um economically finalized which means that if you were to try and reorg you would actually end up um a lot of uh the stake will end up getting slashed uh

because of that because the entire like pretty much like i think it's 66 of the stake is like um uh put put this they're kind of like i guess vote behind the chain being finalized and they stand to get slashed if they try and reorg the chain from from that point on so in proof of stake it's a lot better than proof of work on the real side but the general mav still going to exist unless something fundamentally changes so which i think it might because there's a lot of research and development going in here but we're going to have to see how that plays out so hopefully that answers your question all right one here from ben fallows who asks i work also who says i work in cyber security and it is in my experience that a lot of cyber people are skeptical of crypto because of its

ties to ransomware a quick review of topics at the black hat and defcon conferences the premier cyber security conferences shows almost no attention to crypto i find this to be kind of a big gap when i look at immunify versus bug crowd the difference in bounties is stunning crypto bounties are an order of magnitude larger i have a sneaky suspicion that new talent and cyber security will go towards crypto as people become more attuned to what is going on i know i am any thoughts so uh funny background here i actually worked in cyber security for two and a half years myself as well so i have a bit of a background here but you're totally right there are a lot of people in that industry and a lot of old co-workers i know that are just not interested in following along with this ecosystem because they have a

very bad view of it now i think this is just the general bad view that a lot of people have of crypto is that they only see the surface level stuff now what's the service level stuff of crypto well that's what the media reports on what is the media report on the scams the rug pulls the cringy stuff that goes on the ugliness of crypto they hardly ever and the price rise of course they hardly ever report on the fundamental stuff like if you look at the mainstream media coverage of ethereum it's absolutely shocking look at look at it for bitcoin it's almost as shocking it's gotten a little bit better but it's still pretty bad so when you have that as kind of like the main um i guess like narrative around crypto is that it's it's still just like a thing for scams and it's a thing that's like

the government's gonna ban and it's this and it's that instead of like the fundamental value behind it then people just inherently will ignore it they'll think okay well i don't wanna get involved with this this is dirty whatever this is scammy i'm just going to steer clear of that and ransomware probably plays a big part in that as well because a lot of people will hear about crypto because of ransom they'll be like oh this company got ransomed again they're asking for bitcoin then they'll attach bitcoin to criminal activity which has always been hilarious to me because like fiat is used in criminal activity more than anything but people don't make that connection it's just like this weird thing that in their head um so i totally agree with you that um you know as more people kind of like dig into the ecosystem and actually um understand what it's all

about and understand the fundamentals behind it and understand that it's not all just scams and rug pools and see like yeah the bug bounties in this in this kind of ecosystem they'll definitely join on board and kind of like hop into it but it takes a a while i think it takes them coming to their senses on their own i've had this experience with multiple people before where either a lot of them are just not interested because they think it's all got to do with money they don't see the technical side of it or they just have a really really poor opinion of crypto and it's kind of hard to change someone's mind when they've made the weighted up right so yeah hopefully that answers kind of like your question gives some context around that i as i said like i worked in cyber security so i have a bit of personal

experience here the people i spoke to they didn't really think it was a scam or anything like that but really their only touch point with crypto was through the ransomware incidents that they were responding to um so yeah generally you know they might just put like a sour taste in their mouth as well and they don't want to have to listen about crypt or hear about crypto again or anything like that so uh yeah anyway i'm gonna i hope that answers that question i'm gonna take a one minute break because my dog is barking i'll be back in a sec guys so just take a toilet break or something if you need to you

you uh all right sorry about that guys i'm i'm

back i'll continue through the list here so next question comes from uh patrick again here who says my goal is to launch a wi-fi like product one day i have very little knowledge around vault yield farming strategies let us assume that you would have this goal how would you go about achieving this goal step by step um well i mean i would start by i guess like researching everything there is to know about vaults and strategies and yield farming in general and stuff like that i would definitely study what yeon has done right and what they've done wrong and kind of like i guess even wi-fi's token launch and not even just urine but like other kind of yield farming strategies and protocols out there and stuff like that uh if you don't know how to code i would i would focus on finding a

technical co-founder or learning to code yourself of course um but generally it's it can become very hard to to kind of i guess um launch a product like this if you look at the i get i'm not to discourage you but if you look at kind of like yearn as an example they have a lot of people working on strategies all the time working on their code and they've been around for quite a while now and they you know they got a lot of attention because of their big launch back in the day and stuff like that but i would kind of like go study their forum go study the discord go study the development process to kind of get a feel for all the work that goes into it and how you would go about doing it yourself so i guess like recon would be the first

thing that i would do and start with and then from there i'd get a feel for like what i need obviously you need someone technical on the team to develop the thing or technical co-founder or you know even yourself if you want to teach yourself to code or something like that um but then from there you need like so many other people you need people who who are able to do like different strategies who are able to kind of like um keep up to date with the ecosystem and keep up to date with the competitors and and make sure you can keep doing new strategies and getting people to stay within i guess like your yield farming aggregator instead of going to someone else's um so yeah hopefully that's just a high level overview of kind of like what you would have to do first definitely recon and kind of like

studying the ecosystem will be the very first thing you would have to do all right this one from yo a who says what is the potential for algorithmic and partially collateralized stable coins in the ethereum ecosystem what do you think about current projects in that space such as frax and usdn so i don't i haven't looked into usdn too closely i know a little bit about frax but basically i think that most algorithmic stable coins are ponzi schemes so most of them will fail uh most of them have failed already uh and a lot of them will not and fun and do not work and will fundamentally never work but that's not to say that there couldn't one day be one that works but in saying that i think that um the one that does work isn't going to be called an algorithmic stable coin

um it's going to be called something else uh so um and my thoughts on like frax and usd and as i said i haven't paid too much attention to usdn frax last time i looked was backed by like 90 usdc or usdc derivatives um so until until i see that being like much much less until i see facts facts fracks actually um um acting as a if you want to call it algorithmic stablecoin and actually being stable and working without kind of like ponzi-esque mechanisms in place that's when i would kind of like pay more attention to it there's a few others out there like i know olympus dow i haven't looked too deeply into that but i know that's out there uh obviously fey protocol stuff like that as well um so yeah i mean they're interesting but i think

as i said a lot of them are just never gonna work a lot of them are fundamentally uh not not sound a lot of them have ideas that just don't work um you know may seem like they work in theory but do not work um you know in practice sort of thing so hopefully that answers your question there so this one from brian peace who says i'm really excited for eip1559 but what happens if people start bidding up the tip field for preferential block access could this lead to stuck transactions like we see today when someone doesn't set high enough gas price so the way it works is that you have the the base fee of the ip1559 which is the fee the part of the fee that gets burned and that is the fee that everyone will pay well you know normally right when

whenever you do a transaction the base fee say it's like 10 way that'll be the fee that everyone kind of pays um to get their transaction into the next block like 95 of the time now if people start building up the second field which is the tip field it reverts to the same kind of mechanism that we have today which is the first price uh priority auction uh kind of mechanism here where essentially uh you know if you pay more for a transaction than i do your transaction is going to go through before mine does sort of thing now the way it differs in one five five nine is that this tip field and the price here actually goes up exponentially uh and so what ends up happening is that it goes up so fast eventually that people stop beating it up because it just gets

prohibitively expensive like i'm talking 1 000 way plus like more than that and then uh it's like a self kind of amending mechanism where it comes back down after and this happens over periods of minutes um and things like that um but you know it comes back down after that and then you know the chain kind of like levels out so it's basically a a way to kind of release the pressure and to stop people from like beating up the tip field like you know to stupid amounts essentially and keeping it there for a long time um but people you know just paying the kind of like base fee would should still get their transactions through um due to that way of kind of like working there because there'll be less and less transactions in the tip field there'll be the normal transactions in the in the base fee kind

of field if you want to think about it like that and those transactions will still go through if you want a deeper dive on how exactly this mechanism works there are plenty of resources out there you can search eip1559 resources by tim baiko on google and you'll be able to get a result there there's plenty of research done on this so this one comes from t1 who says in anticipation of the upcoming l2 launches can you outline what you expect to be the biggest differentiators between optimism and arbitram so i think that i wouldn't do this question justice uh i think that there's a blog post that came out a couple days ago called making sense of rollups part two posted on darabit if you google that you'll find it it has an excellent breakdown of the differences between optimism and

arbitrary on a technical level and what it would feel like for the user now most of these differences are technical ideally the user is not going to feel the differences here they're both built on optimistic rollouts which means they both have a withdrawal delay of at least a week um but generally uh for users it should feel rather similar uh the the the both both of these kind of solutions here so i i highly suggest going and reading that post once again it's making sense of rollups part two on the derebit.com website um and you know that will explain everything for you in in greater detail than i can give today so next one comes from a clamato who says hey anthony what are your thoughts on the scale network as far as i know scale network is

another side chain network i just don't hear much about it these days i'm not sure what's happening there um i don't know any projects running on there actually like i actually hadn't thought of scale network for a while until i saw this question so i'm sorry i can't answer that question in more detail i think that um maybe they lost out to polygon in terms of network effects the polygon pos chain in terms of like side chain ecosystem network effects so yeah i'm uh maybe maybe they're doing stuff i'm just not sure about if you do know more about that about scale network to be sure to post it in the discord channel i'm happy to be educated about that all right so this question comes from knowledgefight who says what d5 protocol do you think is undervalued and why is it sushi

so i mean i went through sushi swap versus unisop before um and kind of like how i'm viewing those right now um i i don't i can't comment on if i think you know sushi's undervalued or overvalued i mean it's very hard to know in this space what what's undervalued and overvalued and what you know what's undervalued relative to something else all these sorts of things and as i as i can't really give investment advice or anything like that i can't really comment too much but i think i would just generally say that um i think d5 protocols when you look at them and you're looking for like ones that are undervalued i the way i look at it is i just look at projects that are still kind of grinding away and growing but their token price isn't reacting to that growth so if they're kind of like revenue's

growing if the tvl is growing if the usage of the platform's growing if the like the user numbers and stuff like that integrations if everything is growing except the token price well then that's what we call like a bullish divergence right in in technical terms in trader terms where there is a bullish kind of like activity going on um but the price is not reacting to it which means that technically you believe that the price would react to it later on once the market wisens up to it um that's how i approach what things that i believe to be undervalued versus overvalued but that that isn't like a silver bullet there are plenty of projects out there who have amazing fundamentals but their token distributions their token emissions via liquidity mining are really bad which means that the token price can't really move anyway even if the

fundamentals are growing so you can't just look at things in a vacuum you have to look at things holistically i think all right one here from ben fallows who says i read that after meeting the coinbase ceo the chairman of the federal reserve immediately started a study to look into creating a u.s digital currency i read today that the imf recommended the us create a digital currency it seems it's going to happen eventually what does it that mean for the ecosystem i think i i spoke in detail about this uh at the very start uh when i answered um yan the thorns question uh sorry not not janafon uh con limani's question uh which is the second question that i answered so i won't go into the details there but um essentially i mean we're seeing the signaling from all these kind of

governments and nation states or whatever launching their own cbdc central bank digital currencies um and you know they're all kind of like trying to i guess uh catch up to each other china's leading the charge here and things like that so i do think that it's going to uh be a kind of weird thing to to look at and how it plays out an ecosystem i'm not sure what it means i think that it's going to put more attention on crypto i do think it's going to legitimize crypto uh a lot more in people's eyes but because they're going to just see the digital currency and they're going to think in their head oh like like crypto like bitcoin like ethereum and then and then they're going to see the government giving it legitimacy so then they're going to be like oh well maybe this thing isn't a scam or it's

not just for crime whatever blah blah so i think that'll be the biggest kind of impact it makes but i'm not sure exactly kind of like what the cbds are going to look like how ingrained they're going to be i think you can look to china for an early example of this they're pretty much putting it in everything and it's actually i mean from the reports that i'm seeing i don't know if they're verified it looks a little bit scary because they're going to have like total dominance over people's money and things like that i don't know how much truth there is to that or whatever i haven't looked too deeply into it but definitely governments love their control right so it's gonna be interesting to see how that plays out for sure so uh another question here from yann the thorn who says could you please explain how the

entirety of ethereum state is able to be handled by the computational resources of a single mining staking node in particular when processing transactions on the latest valid block is a given node holding all of the ethereum state in memory or is the case that the node only loads into memory the stored state of the relevant contracts needed to carry out the transactions and then persist the changes back to disk or something else entirely so this is getting like really technical here and probably above what the the answer that i can give but i think you're correct in saying that um the node only loads what it needs um from from the state it doesn't kind of like take all the state into memory and process all of that because it doesn't need all of that um every time it kind of like does transactions i think that's kind of how

it works i'm not totally sure i'm sure there's explainers out there um but as i said this is probably going to like the the very edges of my knowledge around this and this is getting into low level protocol stuff for sure so um definitely i would google for a better answer at this um but i think you're right in your kind of second second assumption here uh so another just another one here from yann the thorn who says nfts are being praised in part as having the benefit of offering proof of provenance remove removing real-world friction of unverifiable authenticity uh one application of this is supply chains where for example you could now know with certainty that the bottle of wine you're drinking at a restaurant truly came from the vineyard written on the label because the qr code

pulls up the associated nft on ether scan but couldn't the qr codes slash public addresses of the nfts be appropriated and slapped on a cheap bottle of wine how could this kind of attribution forgery be resolved it definitely could i mean it's i this this actually reminds me of a um of a a video of andreas antonopoulos talking about this where he basically said it was very it's very easy to trick um i guess like uh uh people into thinking that something's authentic when it's not and especially if as you said you can just swap the labels and stuff like that uh and you know whenever you're trying to get real world data into onto the blockchain and kind of like have providence over it and say okay this is the real truth and this is actually what happened

it's going to be very very hard and you know oracles are the perfect example here where you basically have to trust that an oracle is posting the correct price like if you're using say coinbase as an oracle just as as one oracle for your your kind of default project for example you have to trust that coinbase is one not going to change the price on you because their oracle is essentially an api that they have complete control over and two that it's not going to be manipulated by some kind of like uh i guess person on the coinbase exchange or whatever so those two things uh lead to kind of like a massive issue with oracles and we saw this actually play it with compound where a compound from memory was only using coinbase for their diet oracle and the diet price on coinbase went

haywire and that ended up in positions on compound being liquidated when they shouldn't have been so that's that's another example there but yeah definitely i think that um this is a very very hard problem to solve the attribution forgery i think that we're still going to have to rely on meat space things to do this and i i think that there's still a lot of trust involved here it's it's because it's just outside of the things that ethereum can verify internally ethereum can obviously verify the balances of people's accounts say their eighth balances and do that all well and good and you can have a complete history of that because it's all digitally native but when you start introducing things from the real world into it well ethereum has absolutely no idea if that label was uh swapped on a bottle of wine or not

right it only knows what it's being told from the outside world whereas when it's inside ethereum knows that it told itself that this is the you know account balance of this account at this block number blah blah blah so it's the kind of stuff like that so yeah hopefully that kind of shed some light there for you again all right so uh two more questions here but actually there's four questions from lee phi and then just one more so i'll go through lefi's questions first basically all these questions are centered around a staking so they ask uh a question around penalties i understand that this is different to slashing as i have zero intention of ever being a bad actor the concept of slashing doesn't bother me as much being a relatively non-technical person penalties give me a little more anxiety with my precious aethers on the line

can you please give a breakdown on what these penalties are and how they are triggering using a real-life example of one validator so i would say that the concept of slashing should still worry you because even if you don't um want to be a bad actor you can still get slashed and a perfect example of this is if you double sign or double a test to a kind of like a block here so essentially what happens is that you run a validator on one pc and then you have a backup and then that backup validator for some reason um turns itself on then what ends up happening is that you end up signing uh uh from two different uh i mean from from the same validate on two different machines that is a slashable offense um so yes that's that's one way you can get

slash by not being a bad actor but what you're talking about with regards to penalties it's it's things like going offline so going offline is is typically referred to as the inactivity leak in uh proof of stake ethereum where as you're offline you leak out eighth and it's not you're not getting slashed or anything like that but you are losing eight very slowly mind you but you know the thing is is that the more people that are offline the same as you the more ethiopia you'll lose if it's just you know you offline maybe a few other people offline whatever from time to time that's fine but if like a bunch of people go offline then the network considers that a form of an attack and it will start bleeding you out more now there is a maximum that you can lose from this it bleeds you out to 28

eighth so it will go from so if you have 32 eighth and you go offline for a long time and you get down to 22 eighth it will actually eject you from the validator set which means that you'll get removed from staking and then you can withdraw your eighth uh i guess once the merger goes through you can withdraw your eighth and then you can basically restake by adding another four eighth in uh so you won't lose all your eighth from being offline or anything like that and that's what people refer to as as penalties there um so uh your second question here is can you manage a node remotely uh yes you can you can manage a node remotely just like you can manage any piece of software remotely um there's multiple ways to do this this isn't just exclusive to validators but this is um goes for like

as i said any piece of software that you're running on a server or on like your pc you can use you know very retail friendly tools like teamviewer or you can use the command line then ssh into a box that you're kind of like setting up this validator on um so yeah if you go away on holidays or anything like that you definitely can access your node remotely but again i would be careful with this too make sure that you don't run two instances of the same node like you don't have to run it on separate pcs you can actually end up running two instances of the same validator on your same pc and get slashed that way too so i would be careful there if you're managing it remotely as well third question is about going offline so i kind of half answered this but your

question is specifically around is it possible to just take your note offline for a period of time without being penalized aj your internet goes down or you're moving house so as i said before if you go offline you will be inactivity leaked out so you will suffer that penalty but the way that you would do it if you're moving houses would um you would eject yourself you would essentially say okay i want to stop being a validator eject me from the active set you would wait until you're ejected and then you would move house and then spin up the validator again and you'd be on your way now you can't do this currently because of the fact that there's no withdrawals enables there's no transactions enabled on eth2 so you can't do this as it currently stands but you will be able to do this

in the future so that's how you would do it um moving house but if you go offline because your internet goes down as long as it's not down for like weeks and weeks and weeks you're not really going to lose anything i think vitalik put out a post where he said that you could be offline for months of the year but as long as you're online for like majority of the year you would still um either break even or be in profit because the inactivity leak isn't that punishing um if you're just going offline on your own sort of thing all right so your fourth question here is around selecting a client so uh you say uh curious on your thoughts suggestions i've heard you mentioned a few times on the refill that is a concentrated to a few larger clients currently i'm also doing

my part to a decentralization so i'd love to get your input here so um i guess prism is still the dominant client from prior labs and then lighthouse and then there's the two other clients and nimbus and tekku if you want to run minority clients i would run nimbus or teku they are definitely the minority clients right now last time i checked um i think that you should if you're able to the differences between the clients i mean there are some of them i think all of them actually have a windows release right now i don't i haven't checked for a while but i believe they do so there are some differences about what platforms they support they've written different languages uh obviously they're developed by different teams and at different paces and things like that so there might be bugs in one there aren't another

but that applies to all of them um so and you know some of them perform better than others but they're all pretty good and relative in performance some of them work better on lower end hardware than others sort of stuff like that as well to consider and then lastly you say here could you point us in the direction of some of your favorite setup guides uh yes so the two that i know of that are my favorites is um from bank list so if you just search like staking bank list on google or something you should be able to find those one was authored by justin larue and the other one i can't remember exactly who was authored by but i think you'll be able to find it by simply googling it if not you can go into the bankless discord and then ask there as well

all right so pj fastpants is the last question here who says what do you reckon about the idea that the vast majority of eighth may eventually be staked including by large institutions or nations to get exposure to the yield it seems liquid staking products will become fundamental to the eth ecosystem and may get built into many platforms every bit of spare eath will want free yield yes uh yes with a question mark yeah i think so i think we're going to see a lot of eighth being staked and like especially post merge and especially as more people wise up to this i think we're going to see a healthy chunk of it um being staked and especially if there's like staking derivatives and stuff like that um where you can basically have a tokenized representation of your stake position and you're earning just some little yield even if the yield's

less than like five percent or whatever uh even less than that um make way less than that you're still better off just staking your eth and then um using the derivative eighth in d file or something like that but there are extra trust assumptions there you know i've mentioned lido before if you do this with lido and get st eth you're still taking on uh a kind of risk there because you're not staking on your own you're taking through a service provider and something could happen to ste for whatever reason or lido or whatever right there's always an extra layer of risk there but in saying that there should be trustless ways to do this once the merge goes through and everything kind of like kind of gets set up that way i know element finance is working on something like this or at least they've

mentioned that in the past i think so stuff like that could be really cool but yeah i do think that a large portion of each will be staked eventually and i don't expect staking yields to be like super high i expect them long term to be less than five percent even with the um non-burn fee revenue go into stakers but i think that's fine because it's really just swapping out the active kind of like for sale and the eighth kind of like um uh being staked so to speak so you have kind of like the price should go up with him with more and more eat state right so yeah we're taking that into account as well i think yeah most eve is gonna definitely be staked there so yeah all right i'm gonna that was the last question on my sheet but i do

think uh there's some other questions on the kind of discord chat here but just give me one sec i'll be back again and then i'll answer these questions then we can wrap it up so just one sec guys sorry all right last bit of questions here let me have a look in this channel see what people are saying

oh there's a few questions sorry uh one from ubic who says what webcam do you use i actually use a camera sony zv-1 um because uh yeah so it's not a webcam it's just the camera that i've connect i've got connected through an elgato cam link to my pc and that's why the quality is pretty good next one from mark o who says do you think it's possible that creating algorithmic stable assets is such a difficult challenge due to limitations that exist smart contract design space as it exists today um else are we still in a period where we are viewing how to solve the problem needs to mature i don't think it's it's it's limited by the smart contract design space i just think it's limited by the fact that a

lot of these mechanisms just don't work and they're just like ponzi-esque and they lead to death spirals essentially um and then mark asked do you think future protocol layer changes are pieces that will help us solve the toughest challenges um such as oracle related challenges maybe i mean i i haven't seen the oracles being the problems with a lot of these algorithmic stable coins it's more around the fact that as i said they use the ponzi mechanisms where they use like coupon systems or it relies on on new buyers coming in to keep the peg and things like that so i don't know if um it's related to oracles i don't think so from what i've seen but maybe there's something there i'd have to do kind of like more thinking there um so i think those were the two

questions sorry i know we're kind of on time here so just want to get through the other ones um one comes from grifte88 have you seen have you seen any projects attempting to uh bypass the more ephemeral ephemeral pegs of value to a direct correlation to units of energy maybe like reverse mining protocols um i'm just thinking no no i don't think so uh no reverse mining protocols i don't i maybe i don't know what what um maybe i don't know what you maybe i don't i don't i don't totally understand the question i'm happy to kind of like answer that offline maybe i don't totally answer the question but no i haven't seen any of those um kind of like from from my view next one comes from max8 who says what's

the best way to prepare network skill assessment transferable skills to get involved professionally in the crypto space like non-tech jobs business development marketing sales etc um the best way to prepare is just not not to over prepare i think just to jump into it and start start getting involved like that's what of idea that's what a lot of people i know did um if you are kind of like working in the hard skills fields like developers like say you want to be the solidity developer then obviously you need to learn solidity but if you're doing things like business development marketing community management a lot of that stuff's actually learnt on the job i did marketing at set protocol i had no marketing background or anything like that i think i did a pretty good job i mean i consider what i did with um growing myself in the ecosystem part of

marketing community management so and i knew nothing about that i just kind of learned that all on the job so to speak so those are kind of like i guess like more the softer skills but the hard skills um by heart i mean like you need to actually learn the thing to do the thing definitely development like you definitely need to learn solidity if you want to code smart contracts or some other language depending on kind of like i guess what chain you're doing it for um but yeah and but even that sort of stuff can still be learnt on the job too you just need to know the basics at least to kind of get started and get your foot in the door there all right last one from cams who says anthony you spoke recently about the importance of the onion model to

mitigate mav attack vectors and you said that the social lay is essentially the ultimate defense we have against this if the other layer layers fail media bias is generally an issue in a lot of countries particularly print media here in oz which has carryover effects influencing digital media conversely this concentration of media bias is a social layer failure what important technological or economic strategies do you think we can implement to crypto media to stop us repeating the same faults we see within legacy media e.g daos tokenized niche media allowing authors to extract value for their work so i actually don't believe we need anything kind of like here to kind of encourage this i think we already have this so maybe maybe i'm confusing it i'm confusing uh people a little bit by

saying this let me take a step back i think when you're looking for a source of truth within the real world it's it's kind of hard to get it right there is no source of truth there is no definitive thing that you can point to that everyone's going to agree upon but that's not the case with a blockchain with a blockchain like ethereum when you're looking at the ethereum blockchain everyone agrees on it right and anyone who doesn't agree on it forks off of the chain so if you don't agree with the current state of the ethereum network as it exists as an internal system then what ends up happening is that you fork off the network and you continue on your own the perfect example of this is ethereum classic the ethereum classic social layer or the community that formed

around that were ethereum community members to begin with until the fork happened but then they said well no we don't want to reverse the the hack we don't want to take the money away from the hacker we want to respect the properties of immutability or whatever right and and that's fine so what ended up happening is that they're fine to believe that but they forked off they went and did their own thing and they created their ethereum classic chain and everyone who who believed that ethereum was still the real ethereum and believed that the uh the ethereum chain as we know today um was was right in taking those funds away that is the source of truth for the those people but the source of truth for the people who believe that taking the the hackers funds away was wrong is the ethereum classic chain

you kind of don't really have that hard source of truth in in kind of like meat space in the real world so from that perspective i don't think that you kind of need um anything special for crypto because whenever we're looking at the social air and crypto and we're trying to agree on something we only need to look at the chain itself as the ultimate source of truth so for example if the chain suffered an attack well everyone can see that there is no ambiguity there right there everyone that sees that and says okay well this was a clear-cut attack on the network right they can all agree on that and then and then we can fix that or we can defend against it but if this and and you know no one can can can do any kind of like psyops here like i know in the real world

say like there's some some war going on and then someone attacks someone else and then everyone lies about it and the media covers it up or whatever you can't do that with a blockchain like ethereum or bitcoin because there are thousands of people running the nodes there are thousands of people running the source of truth for example because it's like you know 10 000 bitcoin nodes i think it's a little bit less ethereum nodes so those people act as that social layer by pointing to the software that they're writing that they're in consensus with and that is the source of truth so hopefully that answers that i know it's a bit of a tricky subject um to get your head around because it is kind of different to what we've um i guess like grown up with in the in the meat space where we've never

actually had a way to have this decentralized consensus and source of truth that just keeps chugging along that thousands of people around the world can verify not even just people running nodes but like people who see people running nodes and read from it all the infrastructure all the users and everything you know they are also watching the chain so the chain so to summarize the chain is the ultimate source of truth i don't think we need to introduce anything to protect the social layer i think the social lay is a consequence of the chain and the social layer forms around the source of truth on the chain so if the chain says one thing well the social layers say another and if the social layer disagrees with that then they fork off of that chain and they do their own thing like how i gave

with the ethereum classic example so hopefully that answers that question uh it's actually a really good question i got my brain spinning there for a sec um but the article that cams was talking about here for everyone else the um the um the onion model was around from hasu on derebit as well calling um the cold i don't think i have it up here anymore you can find a link to it in friday's refuel it's in the um youtube description there but that was a very good article the it's kind of i think it's called like the onion model of blockchain security or something like that i covered it on the refuel on friday as well so definitely go watch that if you haven't yet um but yeah that's everything i had on my list and in the channels i believe uh if anyone's got any last questions on

in the audience i'll take them if not we can wrap it up for today i got a question for you anthony yeah go for it uh longtime listener big fan i love your daily great videos you're you're super consistent my first question is you're super consistent on the on your intro are you reading some type of script when you do that the intro no no that's not just from memory now oh that's pretty that's amazing um my my real question is um co-ops are starting to get a lot of traction in the crypto space where do you see the where do you see the future of po-ops um overall that's my question mm-hmm

yeah yeah i mean i totally agree with you i'm seeing it gain more and more attraction that that project's been around for a while i know patricio one of the the founders very very well um he's a good friend of mine so um yeah i i i think that it serves a pretty big purpose within the within the ecosystem and i actually um my hope is that in the future more projects will uh will adopt this as kind of like a way to measure um i guess like to do civil resistance and also measure kind of sentiment of things because for example if you have people holding their their pop-ups and you have like someone have like all these pops if they've gone to all these conferences they've done all these things like they're a genesis validator for example blah blah blah then their voice within their community

should be weighted more heavily than someone who doesn't have any pipes for example because you have a proof or you have many proofs that this person has been around for quite a while and they've and their and their voice should actually be listened to and they actually know what they're talking about sort of thing and everything else that comes with that so that's that's one thing that i want to see more projects do is take into account uh the the pipe holdings of different people and the age of that as well say you have a pipe from like the the first conference they ever did um did it for and then you have all the other ones from there so you have all the devcon ones you have all the 8th denver ones you have the genesis validator you have this you have that i mean there's heaps

of them now but i guess you get the gist of what i'm saying here you know logically that person who's been around for a while who's actually cares enough to get a po should have a have a voice that should be listened to rather than someone who doesn't have any not saying that someone doesn't have any shouldn't be listened to but i think it's a good way to filter out different people in the in the ecosystem in different communities because there's a lot of noise and you want signal in the noise and i think pop-up acts as a really great way to signal um in that respect but also um on that note as well with with governance and with voting on things uh you could literally wait people who are holding pops for your project um heavier in the governance process than those who aren't so

maybe they're voting with tokens as well but if they are voting with tokens and they have a specific pop-up or have a bunch of specific ones they're weighted just slightly higher or a little bit higher whatever you want to tune it to their votes are weighted higher than someone else because they've got that proof there than that they've done something or they've been with the project for a while or they're like more a more hardcore community member or whatever and their voice should be should be louder than someone else's so to speak so i know that that may not seem like something that's totally democratic or whatever but i don't think these systems necessarily should be democratic i think a lot of these systems are experimenting with new governance mechanisms um i think that we can find something better than than democracy within crypto i already think that crypto right now is

more of a liquid democracy system where people can delegate their voting governance tokens to um delegates into like stewards or whatever um and kind of like as their representatives but it's not like you have to wait a year two years four years whatever it is to vote people in and out it's liquid so that you can you can pull your delegation from whoever that you don't like um if they if you don't like what they're doing they don't like the decisions that they've made you can kind of put your tokens on someone else um and you know it's just that i guess like the pops just add legitimacy to those people as well because i would feel more comfortable kind of like um delegating my tokens to someone who had like a lot of pop-ups and a lot of perhaps that actually had to do with the

project than someone who didn't so to speak because it's actual real tangible proof and it goes back to what i was saying before about you can look at the blockchain for real tangible proof of the of of what these people have done and where they've been rather than having to rely on them telling you that hopefully that answers your question yeah i mean uh just to follow up do you see a world do you see a world where you know just normal people will be implementing po-ops in their wedding or some type of club meetup or just in real life yeah i guess that's the other side to it that i didn't really touch on i think i was thinking a bit too crypto native there no i definitely think so i definitely think it's a fun little thing you can do

um and and it's definitely a way to keep track of like you know who was it who was attended where you went uh sorry who was in attendance uh where you went sort of thing and having like a collectible or like a memorabilia from from that event whether yeah as you said whether it's a wedding or something else i think yeah we could see that but maybe that's a little bit further away i think that requires a bit of bootstrapping i know the team's working on this as well but yeah i can definitely see that happening awesome thank you awesome right any last questions before i wrap it up cool all right well that's it for this episode everyone thank you for attending as i mentioned at the start this has

been recorded i will be uploading this to youtube so you can watch the whole thing again listen to the whole thing again if you want so there'll be timestamps and everything like that as well uh and i'll catch you all in two weeks for the next ama and i'll also catch you on the discord channel so thanks everyone