The Daily Gwei AMA Series #7 - 7th of August, 2021

Transcript

all right everyone i think we're gonna get started here so uh welcome everyone to the seventh daily way ama series uh great to see you all here um if you want to participate in the ama and ask a question all you need to do is raise your hand throughout it there's a little icon on the bottom of your screen where you can raise your hand i'll see the request up here on my screen and i'll be able to invite you on to ask your question uh and of course i'll be answering the questions that were posted in the ama series channel as well um and this will be recorded and uploaded to youtube tomorrow so if you have to leave early or anything like that or come in late uh all of it will be on youtube and time stamp with with all the questions and things like

that so definitely um you know that'll be available to you uh today we're gonna get started um by kind of inviting someone that reached out to me on the discord up to discuss all the recent kind of like regulatory stuff that's been going on uh i wouldn't consider myself an expert here i've been following it as best as i can uh but dr zeimalus in the crowd here in the audience sorry i should say um has offered to kind of like give us a rundown and and kind of like speak to it so you know i'm going to invite him up now to the stage and we can get started with him and then i'll just go into the questions from everyone else all right i think he's going to come up now invited you to speak uh so you should be should be able to come up

there you go awesome hey mate how you going good good how you doing anthony good good thanks so much for uh for offering to kind of give us a rundown here this should be really great i think um you know i saw some of the chat you were having uh with the other guys in the um in the channel uh i think it was overnight when i was sleeping so uh yeah great great to have you here well i really appreciate it and and uh you know it's not often that my day job intersects with what i'm most interested in right now which is crypto uh but it's uh you know i thought i'd offer what thus i have uh while it's relevant um and you know the the stuff that i've been seeing over the last couple days uh you know i think it's sort of like uh

we're vacillating between panic and and uh and a little bit of uh you know feeling like we have it under control when we really don't and and you know things can move really really quickly in in the uh legislative branch of the united states or they can move super super slowly so it's really hard to tell what's happening but the the one message that i want to give people you know to to people who are not living united states you don't have to worry about anything you know this is you know not relevant to you uh because this is you know i i am convinced just as i'm sure everybody in the community is that this is going to continue on and keep growing and keep being more and more important to more

people in the world no matter what any one country does even if it's a powerful one like the united states but if you're living in the united states i actually think this is super important and the one message that i want to give to you is that this is a really important juncture this moment right now and uh and it's an opportunity and the reason why is it's just a fundamental thing about how the the senate in particular but how the legislature works in the united states as an institution and what it's a role is that is super important understand and it's very difficult to understand unless you've been around it a lot and that is it's

you know it's really there to to address the concerns of the average person right so if you think about well a good way that i try to think about this is what what type of entertainment and news is the average person consuming so if you're watching dancing and dancing with the stars and you understand the type of person who's watching dancing with the stars that's the person who is going to get their concerns addressed most by the government and and more even more drilling down even more than that that there's just outside of the general voter that there are constituencies that these elected officials know are super powerful they control a lot of people

that they can message to a lot of people they can they can activate a lot of people who will make their political decisions based on what that institution recommends so for example the american rifle is the national rifle association the nra is a very famous one right where they may not represent uh a majority of the american public but their members are super rabid and so everybody realizes that the national rifle association is is a really a huge force in washington dc because of that membership that they've built and in reality if you actually look at what's happening in the gun rights movement in the united states and this is where i think it and

bringing this back to where the crypto community is the gun the nra is now not really that powerful or important to a lot of people who are really care about gun rights right there are all these smaller organisms that have come up that have more of a trusting relationship with the real activists on gun rights in the united states however government attention is a lagging indicator so to the government it's still the nra that's the most important one because they're they're still thinking about the last time that they had to engage with the constituency and the last time they had to engage with the constituency the nra was top dog so think about that when you're thinking about crypto as well right

people don't realize these senators have no way of knowing that thousands of people in their states who are their constituents are trading or staking or providing liquidity are uh are trying to start nodes and what they need is to hear from us because they're the bar here is really low they think that crypto is nothing they think that they can that that there are no voters who vote based on crypto and so if if we make an impact by calling and contacting them proactively and in large groups of people it's going to there's a very low bar to to make them think wait wait a minute

this is actually something bigger than i thought uh and that that asymmetry of information is a huge opportunity for for crypto right now uh and i would have said and i i called my senators yesterday uh and and i can tell you exactly what i said so you can have an idea of what to say but i will say that today it's probably not a good idea to call your senators because even though they're voting today because they they couldn't get a resolve this legislation resolved yesterday their offices are going to be closed so you're just going to go straight to voicemail so today i would recommend that you do something like i did but do it on twitter which is um uh which is to say this is what i said when i called my centers i said hey i live in

arlington virginia which is where i live and i told them my zip code which is important so that they know exactly where i am and i told them that i that i run a small business and that i've voted before i'm a i'm a registered voter and that i voted for the senators that i'm calling before so they know that i'm not just an enemy of theirs that i that i actually am constructive and want to work with them and want and like them right so told them where i was i told them that i'm a registered voter i told them i voted for them before and then i told them why it's so important that they that they go not with a compromise uh quote-unquote compromise amendment from

warner and uh and portman but with the toomey and widen and um i forget the third senator uh the the original amendment which was supposed to fix this legislation and and if you do that on twitter and find your senators on twitter depending on which state you're in uh that will make a huge impact today uh because they don't they're just they just want to go home right this is they have they're about to go on a month long getting out of dc going back not on vacation but to visit with their constituencies in their to visit with their supporters to visit with all the people who are in the states they represent and they want to leave dc it's really hot here it's really humid and this issue is just delaying their

escape from this city they want to go home so uh so they just want to deal with this they don't even care about the outcome so uh it this is an annoyance to them and so it's it's gonna it really is a danger here that they'll make the wrong decision if they don't hear from the right people today uh so that's all i'll say if you if you want to ask any questions based on what i've said anthony feel free otherwise i'm happy to just leave after delivering my message but thank you for the opportunity yeah no no worries uh thank you for for describing all of that for us i think it's really important and i think a lot of people are concerned right now about what's going on and i think you put it really well i think there is sometimes a bit of i

guess some annealism around this where people think that calling you know does nothing and it doesn't make any changes and anything like that but i really do think you put it well where you said that these people they just don't don't know how big crypto is like you know if you're in the ecosystem every day and you're on twitter or whatever you know you may think we're much bigger than what we are but we're very we're very tiny we haven't penetrated really the the real world and especially not the world that these kind of like senators live in there most of them have no idea how big this ecosystem is and and how big it its potential is and you know as you said like a lot of them you know we just want to go home and things like that so they're probably not

not too keen on learning about what proof-of-stake versus proof-of-work is uh on you know on a saturday so uh yeah no i i think you got a great a great overview there about about all of it um and yeah i didn't really have any questions my myself but if anyone else does i'm sure they can ask you in the discord channel and you know you'll be around to answer them i assume yes i will thanks so much i really appreciate it and uh have a great uh great saturday it's it is saturday where you are right yeah still for another about 50 minutes great thanks awesome thank you mate see you later cool all right well i'll keep moving through uh the list of questions that i have here but i'm also taking questions from the audience obviously so if you want to ask a

question you can just raise your hand i'll invite you onto the stage and we'll get you up here so the first question uh that is in the ama channel came from yo i or yo e who said how do you evaluate how do you evaluate the quality of a dao and its governance what are the specific attribute structures and red flags that you look for so the fun thing about i think the dow space right now is that there is so much experimentation going on that it really is like an open field of how to evaluate these sorts of things but there are obviously some red flags right the things i kind of look for in a dao is is what the community is like so the the number one thing i always check is okay is this community like solely focused on the price of the

token that's associated with this project or that actually care about like the product itself because if you have a community that is just like super price sensitive and super price speculative and all they really care about is he's pumping the token up well then you can be you know you can be pretty sure that this community isn't really going to be involved with any kind of dow stuff and and the dow itself is not going to work and it's just going to be like the core team doing things um and you know that that doesn't make a good deal of course right so that's kind of the first thing i look for um but i also look for like the structure of the doubt there's um i've spoken about it plenty of times before but the index co-op is one of my favorite kind of downs because they have the

structure down like very nicely if you go in there you'll see what i mean like in their discord channel or on their governance forum but they essentially have this thing it's kind of like they're not the only ones that do this but i'm close to the index co-op through my work with set um but they have these things called working groups which is basically like business departments like if you have if you're a massive corporation say you have different like business units um in your corporation that handle different things you know you might have a marketing department you're going to have like your devs in another department you're going to have in business development and one other and design and other sort of thing right but you all obviously talk to each other but uh it's it's distinctly separate and that's exactly what these dowels have

they have these working groups whatever people want to work on they can go there um and they they just basically work in independently but also like they cross communicate with the rest of the working groups as well uh so and that's hard to get right you know organizing humans is not an easy task and uh i've seen the index co-op do it really well as kind of like a newer dow maker dow is another one that's been working on this for quite a while they have a bunch of working groups too uh there's you know there's new there's other newer dials like yearn finance and i mean uh uni swap is in your dell unisop's a funny case because i mean i think their governance process is a bit bit messy right now i think it's getting better over time they do have different working groups and like grants

programs as well it's another thing that a lot of these dows have um but it is messy because there's a lot of drama that goes on and that's kind of like another thing i look for it's like how much drama is in this doubt like how many disagreements are there on everything like do these disagreements get resolved or is it just constant like fighting like infighting within the dao is it like a toxic environment to be in so really i mean the way to to i guess like evaluate a quality of a dow is the same as you would evaluate the quality of a company like if you go work for a new company and you notice that like the the culture is toxic right like the managers are always kind of like micromanaging everyone and making everyone feel like crap uh you know the work that you're doing

is boring and you know not fulfilling then it's kind of like the same thing as these dows i think that's kind of like how i how i kind of look at things but definitely my biggest red flag is always if the majority of the you know discord channel for example is focused on price i kind of lose interest because at the end of the day a price sensitive community is not a good community in my eyes because then you know if the price goes down and the price doesn't do anything you have these people that just leave right because they're just they're only interested in the price going up there i mean they're called moon boys or whatever you want to call them on on twitter like nicknames they have and sorts of things like that so i think that's kind of like the number

one thing i always look for uh and it's funny because like with you know if you can ethereum isn't a doubt but if you like look at ethereum and kind of like you know you go on twitter and you look at everyone tweeting about the price all the time and and you know it's not just a theorem it's about every other token i think you have to separate that from the actual community because a lot of people are going to tweet about the price especially when it's going up right even when it's going down like if it's going up or down it's getting tweeted about but it's more about like the people actually working on the project and like what they're doing you know are they still working on it regardless of what the price is well i mean yes that's very true for ethereum for

example uh even though ethereum's not a doubt i think it's just the perfect example where a lot of the work you know got done during the bear market like d5 was born in the bear market you know eth2 was was a majority of it was developed and researched and deployed during the bear market and things like that and it's just the same for other kind of like uh projects like the um default projects like rv and synthetics and things like that that basically rode through 2018 and 2019 and even 2020 and their community they grew through the bear market and that was a community that wasn't price focused they were focused on the actual project and the price going up was just like a bonus for them um so that's kind of like what i what i look out for um as a general kind

of thing there so hopefully that answers your first question and you had a second question here uh joey where you say also what are the best examples of well run dows today in your opinion okay well yeah that's basically index cop make a dow um i think um your own finance is really good there's a bunch of others out there i don't know all of them off the top of my head um but yeah i mean as i said i'm close to index co-op so i know how that's kind of like run um and i kind of pay close attention to it so that would be you know the the one that i would actually look at so you can just search them on twitter or whatever index cooperative um and you've probably heard of them by now but they're the kind of like dow behind things like the

d5 pulse index and the eighth fly the flexible leverage index and stuff like that they're actually making awesome products too so uh yeah i won't show them too much but yeah that's probably the the best example of a well run down but but maker's been you know one of the longest dowels so that's another really great example i think all right i'm just going to keep moving through kind of the questions here if you do want to ask a question just uh put your hand up i'll invite you onto the stage but if not i'll just keep moving through what i have on my list here all right so the next one comes from silent john who says somebody asked in the last ama what exactly is an l2 it's often described as a scaling solution uh for ethereum but what does that mean i've never been able to wrap my head

around where my tokens live on l2s so i guess what we mean by a scaling solution is that it essentially so i guess maybe i'll take a step back here the way the these l2s work um specifically roll up so zk rollups and optimistic roll ups is they essentially compress uh a bunch of transactions into one transaction and put that on the ethereum layer one so for example say on layer two you have uh you know ten thousand transactions that get done well then i'm just using random numbers here just to have a point to kind of like explain this but you have ten thousand transactions on layer two that gets compressed into one uh uh proof so like a proof that those transactions happened and were processed on layer two and that proof gets uh gets put onto

ethereum layer one and that's just one transaction so essentially what ends up happening is you compress all the transactions down to one and you only post to layer one the information that's needed to verify that those transactions happened because what the l2 does is it splits up um the the computation of the transaction so it takes that off chain onto these kind of like l2s and puts only the data or the tr for the transaction on layer one so that what you and i can do if we wanted to is we could actually download that data off l1 that one transaction and then we could replay it on our own local machine if we wanted to to to make sure that that actually processed everything correctly so we could basically unpack those 10 000 transactions it's sort of like a zip file or a raw file on your um

on your pc when you compress like all these files into one kind of zip file and then you can kind of unpack them and you run the computation to do that on your pc that's the same kind of thing that happens with these l2s so that's what we mean by like a scaling solution here is that uh that's kind of like one way to scale there are multiple ways to scale but that's that's one way um but that's kind of specific to l2s um the rollups and things like that um and then you say you know you've never been able to wrap your head around where your tokens actually live actually live well you'll have noticed with a lot of these l2s if you've used them such as like optimism but even uh things like side chains kind of uh abide by the same principle

you send your tokens to a contract on ethereum right and these are usually called a bridge contract so what that does is essentially the bridge uh once the tokens are sent to the bridge it sends a signal or a message i guess um you know just trying to say hi level here to the l2 saying well you know this has been deposited from this address so please credit this kind of like eighth for example on the l2 to the same address and then you can switch your network to the optimism network for example from the ethereum network and you'll be able to transact with that eth that is now uh locked in the contract on layer one so they just lives in that bridge contract it just sits there until you withdraw it back out and then um you know in the case of optimistic rollup something like

optimism it will take a week to withdraw that uh directly from the chain with zk roll ups it's you know a few hours and sometimes it's much shorter than that depending on the implementation but yeah it lives in that contract on layer one now this is the same for side chains but the thing with side chain something like the polygon pos chain is that yes it has a bridge contract but you have different security guarantees so the bridge contract that goes from say ethereum to the polygon pos chain is very different than the bridge that goes from ethereum to optimism because the one that goes to optimism is because optimism is secured by ethereum's layer one you can always get your funds out even if the optimism network was to go offline because your funds are on layer one you have proof that they that they are yours

and you can withdraw from that contract whereas if you bridge over to polygon the uh the pos chain uh the only way you can get back to l1 is if the pos chain is still uh working and still live um and there is a little bit of difference with with polygon because they actually save the state to ethereum every few hours um uh but like just just to simplify things if the polygon pos chain was to go offline then you wouldn't be able to get your funds back unless that that that kind of like came back online because they would be stuck in the bridge there'd be no way to kind of send those uh those funds back and unlock them on on the ethereum kind of like l1 side uh so that's kind of like the the security trade off there uh whereas you know with an l2 you can

always withdraw your funds no matter what with a with a side chain um you know especially something like that that doesn't share it that doesn't even save it say save its state to ethereum like polygon say like bsc for example if bsc was to go offline um then you would lose all your funds that was on there uh even though they're in the bridge contract on ethereum so hopefully that answers that that part of the question there and then you said you know when you tried out loop ring you sent your tokens to loopering and then you could do stuff on there so yes you were sending your tokens to a contract and then it was credited to you on loop ring but you couldn't see your tokens in metamask anymore and had to track via zappa uh and you said you're you're confused on where your tokens actually are and

when i use an l2 i've sent everything back to my main wallet because i don't really understand it i mean this is totally fair right but the thing is is that i think loopering uh treats this a bit differently where you don't have to change your network um and you know i won't go into the underlying architecture of how it all works i i wouldn't call myself an expert on that but in terms of like the the other l2 is like optimism and and arbitrary and other things like that uh what ends up happening is that you change your network like for anyone who's who's done it you go to metamask you go change network and you scroll down um you know passed all ethereum and the test nets and you go to the optimism network and then you can see your balance in your wallet

just like you would normally on the ethereum main net whereas with something like uh like loopering and stuff like that it works a little differently but i think i mean i think i remember when i was when i was playing around with it you could still see your funds there so it might have been a token that wasn't supported or you had to add manually to your metamask or something like that um if you want you can you can you can ask me you can dare me about that if you want some support there i'm happy to help you with that uh but yeah hopefully that answers your questions around kind of like the l2 and l1s um because yeah if it's kind of like a true l2 on ethereum then everything should be fine once you change your network you should be able to track your funds

uh in your metamask or you know whatever you use essentially and you should be able to interact with it just like you would a normal ethereum chain but obviously with the benefits of the cheaper fees and things like that all right the next question here comes from rv deeb who says what are the main points you look at when evaluating other l1 chains are you mainly just looking at look at the number of validators to see if it's actually decentralized and some of the projects to see if there's anything new and exciting but would be good to know what others you check so the number one thing i always look for in these other l1 chains is the level of decentralization because and also i guess like the plan you know a lot of these chains obviously will start off centralized because they're very new

and if they like they've always got like a plan to say okay we'll decentralize later blah blah whatever but what i fundamentally look for is can this actually decentralize later and pretty much all of them can't because what ends up happening a lot of these l1 chains will launch with uh saying you know are we uh more more scalable than ethereum we have x and x amount of transactions per second you know come use us because you won't have to deal with high fees but they'll never tell you the trade-off and the trade-off that they take is the is on the spectrum of decentralization and security where instead of having a robust set of miners and in the future stakers validating the network in a very and a robust kind of like um uh node running set where you know there's thousands of people running full nodes

they'll typically have a lot of them use the popular consensus mechanism called distributive proof of stake where essentially there's just like a handful of nodes that run the network and it's not real proof of stake like what ethereum is people can just like delegate their tokens to these um i guess they're called super nodes which run the network now this is not very decentralized if you know there's multiple examples of this eos was was famous for being one of the the big ones for doing this where there was 21 uh super nodes essentially they were all running in data centers and the chain was like exploding in growth because of the fact that they had like an uncapped amount it wasn't uncapped but they basically had like a an extreme amount of transactions per second that was only able to be achieved because they had these super nodes

running the network now if you or i wanted to run a full node of eos on our kind of like pc for example we wouldn't be able to do it because it was so intensive to run that node um so that's like the number one thing i look for and most of the chains actually run like that all of the ones that you've heard on before before pretty much run like that so like solana runs like that cardano runs like that um you know there's even worse ones like i remember neo had like seven nodes or something like that and most and most if not all of them were controlled by neo themselves uh bsc um bsc is funny because like i i know i don't know for sure but like i'm pretty sure that binance controls all of the nodes um so like you know that's totally centralized

and also they at the end of the day like they can say oh we'll add more nodes in the future or whatever but there's no path to decentralization because in order to get that decentralization you need to give up the scale now when you start giving up scale well you're just back to ethereum essentially right if you if you if you start decentralizing out you have to basically make it easier for people to run nodes which means limiting the network's growth which means limiting the network scalability so you're just back to what ethereum is and you and you kind of like slowly rediscover well this is why ethereum is the way it is because right now if you wanted to you know if the ethereum network wanted to we could raise the block size which is called the gas limit in ethereum to a million uh not a million sorry to

like 100 million or 200 million or something like that uh that would obviously scale the chain massively and we'd have low fees again but it would base it would mean that the chain becomes unstable because it's very hard for the network to communicate with such large blocks between all the full nodes like the thousands of full nodes out there and and all the different miners because propagating those big blocks across the network um becomes very very difficult to do for consumer hardware and consumer internet connections this is why these supernodes are running data centers because uh they're kind of purpose built for these sorts of things um so that's kind of the number one thing i look at and then in in kind of the same spirit as decentralization i also look at the token distribution because all of these chains are pretty much starting off as

proof of stake these days and if their distributed proof of stake i already kind of like lose interest because i want to be able to kind of stake my tokens on my own machine run my own validator like i can with ethereum right i don't want to have to delegate my tokens to someone else doing you know on a super node and then they're in charge of doing everything for me i i i personally don't want to do that but also like what's the distribution like was it heavily vc um you know uh skewed like did the vcs and insiders and team uh keep most of the tokens for themselves well if so well then what's their incentive to sell they can just take forever right they can just keep their their coins from day one staking in um you know in one of these chains and

basically have total control over the network you know for the foreseeable future uh and there's not really no real reason for them to sell at the end of the day like they may sell chunks here and there but a lot of them kind of like just permanently stake and sell off the rewards for example now some people argue well you know doesn't it sound similar to ethereum where people can stake and then not sell and just take forever yes that's true to an extent but the thing is ethereum is not just depos or distributed proof of stake or doubt sorry i should say delegated proof of stake it's technically delegated but um you know everyone can stake on their own if they want to yes the uh i guess like the um the minimum eighth required amount is really high right now it's 32 which is like 100

grand at today's prices um but eth had a very very long distribution period where originally it had a sale which was open to the public thousands and thousands of people participated in that sale but at the same time you also had a very long proof of work phase and a very long phase where there wasn't proof of stake and there was lots of market cycles so from 2015 mid 2015 from when ethereum launched uh there was i guess i think 45 million so far coins issued via proof of work which were distributed throughout the network and then there was multiple kind of like boom and bust cycles where people either you know bought and sold ether in during that and then all that eighth kind of like dispersed itself so many more people had the opportunity to buy each much cheaper as well

and a lot of people bought you know that 32 when it was much uh much less to do so like a lot of people bought it when you know it was ten dollars it's 320 bucks to buy 32 a lot of people bought it when it was 100 it was 3 200 which is you know if you're if you're kind of like living in a first world country you can spare that obviously that's getting in like the high end of things as well for a lot of people but still you know there's a lot of people who bought up that that amount of ethan now they're staking and they're kind of like part of the network and all that sort of stuff and they're not vcs or anything like that there's no like heavy concentration here in any kind of one actor um so that's another thing i kind of

look for in in kind of like the decentralization thing now the reason why i i'm so heavily focused on that is because without decentralization i don't think you can attract a good community i don't think you can attract a community that has like values and that has like a good ethos behind it that wants to stick around no matter what the kind of the price of the token is doing because if you look at ethereum um a lot of people stuck around no matter what the price was doing and continue to stick around and the builders are here because they're on a mission and they really want to build something that's truly decentralized they don't want to compromise on that they're they're they have like a very um they take their values and their core ethos of decentralization very seriously and they understand the reason why

ethereum's layer one is inherently unscalable because you get the decentralization and security from that and they also understand that we can scale via layer two so let's not make those sacrifices to do that so any kind of like l1 chain that makes those sacrifices just isn't interesting to a lot of these people so then you basically don't have a good community you just have a community full of speculators um and people who just really aren't long-term oriented so you essentially like as soon as the the bull market subsides these people just disappear and then your chain like basically has no activity no apps or anything on it and then it kind of like dies off regardless of what the market price is it just kind of like loses steam and dies off um well you know the chains that do have that such as ethereum continue with

their march on development keeps continuing network effect keeps going you know and it keeps getting bigger because of that as well so those are like the definitely the top things i kind of look at and i can pretty much at this point i can say that i don't think there's ever going to be a layer one that launches that is going to pick my interest again i i feel like ethereum is it i feel like ethereum has already won that whole race i um i don't think that it has competition for what it is which is like the global sediment layer the the center of this entire ecosystem and i just don't see any way that viable competition could come to market even if you were to clone ethereum and even if you were to say not clone it but like copy it and say okay well

we're a limited chain right um you know not a limited chain but we're like uh decentralized because we're not blowing out the scalability and we have like say 20 30 transactions per second or whatever instead of ethereum's 15 um you know we're here and you know you can come use us because we have this cool new programming language or we have this and this and this feature but people will be like well what what's the point like switch the switching costs are insane like switching from ethereum to this other chain like what's the point especially if the scalability isn't even there uh which is uh which is why a lot of people kind of like a lot of l1s market themselves as more scalable because they know that there's no other things they can they can compete on they can't compete on network effect they

can't compete on liquidity they can't compete on developers or ecosystem they can only compete on marketing and the the best way to market especially to new people is to promise uh is to kind of like harp on the weaknesses of ethereum and obviously a lot of people who are new to this ecosystem don't understand that layer 1 is only unscalable because of all the reasons i outlined not because ethereum is inherently weak for example so i think all this like is very nuanced and is something that definitely is not for like the average observer of crypto people who just like sitting in here i don't really care to learn about this sort of stuff they just want to kind of like buy some tokens and that's it but even for those people the fact that like ethereum is is talked about all the time is is is

in the is in like the press all the time is is is the biggest kind of network uh behind bitcoin right like it's the biggest smart contract network network by far all the activity happens on there all the d5 stuff all the nft stuff um even those people the one the casual observers will still say well you know i need to kind of like get involved or i need to buy eighth because of all this stuff i've heard about it um you know but they also buy other things like these casual observers because they're prone to marketing and and these are other competitive competing r1s know this so that's why they always hop on about scalability so yeah hopefully that answers your question about like what i look at when evaluating these l1s and how it all trickles down really from uh decentralization because if you

don't have that then you can't have anything else and then it all just comes back to ethereum in the end anyway and even the scalable chains uh even if you know they're scalable and everything like that it's hilarious because it's it's just a great irony that pretty much all of them got no traction except the bsc and bsc is just a centralized version of ethereum but uh and and the thing is the reason why it's more scalable is because they just said well screw it like we don't care about decentralization we're just gonna blow out the gas limit we're going to lower the block times um we don't care if no one can run a full node we're just going to do this because we know that we can get the activity over because we're like fully compatible with ethereum apps people can just clone

their apps on here and essentially what bsc became was like a bit of a casino during the mania and a lot of activity was generated there because of that but there was no lasting activity there everyone just came back to ethereum especially because ethereum has l2s going live now and things like that all the developers stay on ethereum all the network effects still stay there so i just find it like very very difficult to imagine a world where any l1 even comes close to ethereum that's not to say other l1s don't can't compete in their own niches and probably they will because ethereum won't be able to service like every single use case um you know yeah maybe it's l twos we'll be able to one day but we're still kind of like early days there but i do think there are there is a

world where you know these l1 can still gain traction but nowhere near ethereum's attraction like even the market is is saying that like if you look at like the market cap differences between these things so i think uh those are the kind of like main things i look at so hopefully that answers your question a bit of a long-winded answer there but this is the kind of stuff that i think about a lot and i really do think it all comes down from decentralization and if you don't have that you don't have all the other stuff that you that you want when uh when kind of evaluating this sort of stuff all right i'm gonna move on to the next question on the sheet uh if in case anyone else has a question be sure to raise your hand if you do so all right so this one comes in from md

triple eight who says what action are you taking not taking based on the current stable coin on quote-unquote crackdown thoughts on ust as a safe haven so i'm not taking any action really um i don't really take much action when regular regulation kind of talk comes because i don't know like if you kind of look back and look at all the regulation stuff that's happened maybe in the past couple years it doesn't really affect this space too much i mean the the biggest effect was i think china you know banning mining or like cracking down on mining and then cracking down on exchanges and things like that but in saying that i actually don't even think china was the reason the market crashed um i think that btc was already kind of like showing

weakness because it had an amazing run up until that point and i think 8th was just like at a point where it was just having a crazy run and it decided you know we've got it it's too hot there's so much leverage in the system um you know this is it's going to crash like here's a convenient reason for us to crash so i think the market would have crashed anyway so even that i wouldn't consider to be something that uh that you know people should have had to worry about and in the long run actually that's kind of bullish for bitcoin then that miners are getting kicked out of china because it just decentralizes the miners further but i guess you know and look at the regulation recently uh with this this bill that's going through uh the market's been pumping right in the face

of it there was regulation back in december around the treasury wanting to ban self-custodial wallets or something like that or put kyc on them the market pumped after that right it was like 600 bucks back then um and and you know if you take a nuanced view of the current regulations happening right now whether that be related to the stable coin crackdown or this bill uh this infrastructure bill uh the infrastructure bill is going to be two years before it goes into law it won't go into law until 2023 which means that you have two years to kind of like fight this in the courts and and fight back against the and there are a lot of vested interests now fighting back against this whether that be all the centralized exchanges in america or all the kind of like vcs and things like that these these have

these people have lots of money they have billions and billions of dollars and they have armies of lawyers ready to kind of like lobby uh the politicians and fight for this in court so this wouldn't become law for two years and also the regulations themselves i mean as as as alarmists as people are on twitter it's not like they're outright banning crypto with them like even if they were to go in for some reason it's not like an outright ban on crypto and the us is only one country too and i know they have like kind of i guess uh influence over over the rest of the kind of world and things like that but still like it's one country it's not a dictatorship right it has to go through an entire political process and then like entire governance process and there's checks and balances

everywhere so whenever i look at this regulation stuff i really just i mean i pay attention to it but i don't like trade based on it or i don't position myself in in kind of like a defensive position because of it because really i just don't think the broader market one cares too much really and the ones that do care and are in the know they they kind of look at the nuance such as the bill not going kind of like interlocked until 2023 and they think to themselves well if it's not going into law to 2023 and the market's hot right now and the momentum is like a bull market then why would i sell sort of thing right and these are the kind of players that can potentially move markets like the bigger players so that's kind of like how i view it but in

terms of like stable coin crackdowns i mean i think this was inevitable i had always thought it was uh a bit weird that the us government was allowing stable coins to be issued such as like usdc and having like basically very little oversight over these things and also allowing people to do whatever they want with them now regardless of what you think um you know if it's good or bad i just was really surprised that this went on for this long because at the end of the day this is basically a usd iou essentially like usdc is an iou from circle and you can do whatever you want with it on the ethereum network or other kind of networks that you can bridge into and things like that so i i'm surprised it took them this long but generally with stable coins especially ones that are tied to the us

dollar there's just going to be regulations around it all you know all the time and uh for the foreseeable future as well i don't think that's going away anytime soon but this is also why we need decentralized stable coins whether that be something like die that's pegged to the dollar as well uh that doesn't matter because it is not it is not issued through like an iou it is it is issued as a synthetic dollar with eth collateral backing it or you kind of have like um something like rye which is basically not pegged to a dollar but it's stable around itself and it's also backed by eth so so those are alternatives as well in terms of like ust as a safe haven this is the stable coin on terra i believe i don't think it's been out for long enough and i don't think any kind of

like stable coin is really a safe haven just yet i think pretty much all of them have centralized points of failure so if i was to go into a safe haven and wanted to protect myself from kind of like the the governments i would go into like eighth for example right i wouldn't go into like a stable coin that is tied to the the real real world even die like dies backed by what 40 50 of usdc still kind of the same issue there so in terms of safe haven assets the only one that i consider to be a true safe haven on ethereum is eighth so yeah hopefully that answers your question uh md triple eight so the next one comes from original grabs who says uh you may have done this already but uh can you do a deeper dive into aip3074 and eip3675

i did this on the refuel but for those of you who missed this i'll do a quick overview here overview here so what erp 3074 aims to do is vastly improve the user experience now there is a bunch of stuff that goes into this a bunch of technical stuff surrounding it so i'll just kind of like talk about it at a higher level 3074 it basically introduces introduces a mechanism to essentially bundle together the approved transaction and the swap transaction for example so if you go to uni swap today and you need you want to swap a token that you haven't approved yet well you have to approve the token in one transaction and then you have to swap in another transaction so you have two transactions two sets of gas fees and it's kind of annoying right whereas with 3074 what it allows

developers to do is code their contracts up where you can basically bundle these together so you only have to do one transaction for an approve and a swap which is awesome right it's a huge ux upgrade at layer one um but this isn't the only thing it enables it enables a bunch of other interesting things that developers can do you know bundle these things together and uh basically at a really technical level i believe what it does is it kind of like aims to get rid of the distinction between i guess an externally owned account and a smart contract account i think i'm not i'm not sure here because there's actually two account types in ethereum um one that's a smart contract uh that's an account type and then there's externally owned account which is a normal ethereum address which is what you and i have um so and obviously

externally owned accounts can control smart contracts and interact with them you know when you see people say oh there's a multi-sig that controls this contract well that's like an externally owned account uh for example um and so things like that so uh or like i guess like multiseasons can be smart contracts too it gets a bit confusing there so that's kind of like the higher level of three zero seven four uh three six seven five is the merge eip so this was an aip that went in a couple of weeks ago got accepted into the draft stage this basically describes the process in which the eth1 chain will be merged into eth2 now for those of you who don't know what the merge is high level it's basically getting rid of proof of work from the ethereum chain and putting in proof of stake now we have a proof of

stake chain live today it's called the beacon chain it has been running since december 1st 2020. it's like 6.7 million each staked on there there's a bridge to get your eighth across on on on eth1 and all those sorts of things uh so yeah the merge is basically just getting rid of proof of work putting in proof of stake but the ethereum chain remains the same so the chain that we all transact on and no one love today remains exactly the same the only thing that changes is that consensus mechanism where uh it will it will we will have a proof of stake of validating the network and you know um and processing transactions instead of proof of work which is a huge change obviously and it's been a change that's been in the works for many years now um and and you know people are very

excited about it because we get to get rid of like proof of work and mining which many in the ethereum community consider to be very very wasteful and not a very good consensus mechanism we you know i i actually believe ethereum's proof of stake is much better than um than proof of work uh generally regardless of the environmental concerns it's just offers better security better bang for your buck security because with the merge we also drop issuance by 90 percent right which is crazy because at the moment issuance is about 4.5 percent on the eth1 chain once you get rid of proof of work and implement proof of stake only the issuance it will be around 0.5 percent and it goes up depending on how much eighth you staked but even if there's like 30 million eight stakes or something like that the issuance is only one percent and we're

currently burning more eath than uh with one five five nine then we're issuing on the proof of stake chain so eath would still be net deflationary which is quite cool as well so that's another reason why people are really excited about about the merge is is basically getting off um you know the proof of work issue and stop overpaying for security and get better bang for our buck here so yeah hopefully that answers kind of like your questions about those two eips obviously people can google those if they want additional answers here all right so one here from andreas who says will there be intrinsic value an intrinsic value difference between nfts on layer 1 ethereum versus layer 2s whether for status eventually or gas related reasons or other reasons both collections for example punk's

board 8 yacht club versus future l2 uh projects and more traditional art uh such as uh lulu xxx ferocious on layer one versus future artist on layer two or frame differently will in the future deciding whether to mint on l1 versus l2 player role in value i think their answer is no to most nfts and but i think the nfts draw their value from a lot of different things and i would say that where they're issued on is besides like it being ethereum versus another chain um if you're making this distinction between l1 and l2 l2 i don't think that's going to play a big a big big kind of like part in the valuing of these things uh for example you know if you're looking at crypto

punks and why they're valued there's a million different reasons and i haven't heard anyone talk about the them saying oh well it's because it's on layer one ethereum and it's not on layer two um and and though you know some of those reasons for punks is basically well it's widely considered the first original kind of like uh you know semi-popular nft on ethereum it has a lot of law and history behind it they were given out for free now they're worth you know millions of dollars there's only 10 000 of them a lot of them are lost because a lot of people forgot about them they basically have um uh identifiable features which people kind of like put as their profile picture they're a status symbol they're for flexing right there's there's all those kind of things there they're they're infinitely kind of i guess um uh i guess like uh

what's the word i'm looking for you can basically do different things with them like issue different nfts against them you can you know put them in like metaverse games and stuff like that so i mean there's a bunch of different reasons why something like like punks are valuable um and i just don't think there's going to be much of a distinction between l1 and l2 where the distinction does lie though is nft is issued on ethereum versus nfts issued on another network uh because i think that with when they're issued on ethereum people understand you know ethereum is the cultural hub of this ecosystem it is where nfts were born and bred it's where they live it's it's it's you know where the the the kind of like cultural center comes together um and and essentially like where the permanence is too where you know you can swap these things

freely and openly no one can control what you do with them uh everyone's open to build on these sorts of things you can buy and sell them on openc and all that sort of stuff so i think that plays a much larger role than l1 versus l2 uh uh in terms of like value for these things but in saying that you know i think i personally think crypto parks is always going to be the most valuable nft on ethereum uh and they're obviously what you shoot on layer one uh and maybe people will end up covering that in the future for some reason uh but it remains to be seen i think that i personally don't think that's gonna be a big distinction because you can bring these nfts back to layer one from layer two anyway so does it really matter where they are

minted i guess does it really matter i mean you know you can use a real life analogy here does it really matter that the ceo of a billion dollar company came from another country and not the country that the company was founded in i mean no not really right like is their value determined by their kind of like location not necessarily so is the nft's value um valued based on kind of like their location on ethereum i don't think so but yeah as i said it does get a little bit a little bit kind of different when you look at other chains versus ethereum because of those different kind of properties there so maybe maybe my analogy isn't the best thing in the world but just something i came up with then but yeah hopefully that answers your question andreas all right i'm just gonna have a quick

drink and then i'll keep going through the questions all right one here from original grabs again who says can we do a deep dive in setting up a validator node um not on the ama because that'll take me a while but essentially uh there are a bunch of guides out there right now for setting up an eth2 validator bankless has a couple you can just google for them you know eth2validatorbanklist that'll come up with a few links for you but it's very straightforward actually there's a bunch of videos too from different people as well on youtube if you just if you just um search for that on youtube too um but it's not too difficult to set up your own validator on your machine i mean a lot of you who watch the refuel will

see that there's a pc next to me uh uh if you look at my kind of like a camera there um that is my staking box it is like a pretty pretty modest box it's not anything too kind of like complicated or expensive and i just kind of like installed i mean i'm running windows and then i kind of like installed my validator and everything like that and followed the instructions and it was it was very straightforward to set up but if you need to but that's cause like i have a background in in computers as well in technology so it's a bit more kind of like second nature to me but if you want like a a totally noob friendly guide bankless has a couple that you can google for so just search eth2validator bankless and uh you'll you'll be able to find those articles on there

all right a question here is a few questions here actually from yawn of the thorn so the first question is um how do bridges from l1 to l2s or l2s to other l2 side chains work under the hood um when i take say one ether that is displayed in my metamask account balance connected to the ethereum network and then bridge it to optimism what exactly is happening i explained this earlier um when i was answering a different question but i guess like the tldr people who just joined is when you send those funds to the bridge contract that lives on ethereum they are essentially locked in there until you choose to withdraw them again now there you can withdraw them at any time you want you basically just submit a transaction a withdrawal transaction or you know which basically hits a function on the smart contract which releases

them from the contract uh depending on the rules so with optimism it would be a seven day withdrawal period uh with uh you know different zero knowledge proofs it can be anywhere from like uh you know a couple minutes to a few hours uh and then with side chains it can be you know a few hours like with the polygon pos side chain but if you go through their matic um plasma bridge it can be a week so there's like in different kind of times there but that's essentially kind of how it works and how the bridging kind of works under the hood there um and then you ask does my ethereum network either get locked up in the contract yes um and then only to be released later when you bridge it over yes um and how is the ethereum network able to communicate with the optimism

network such uh that an equivalent amount of eth is then minted on optimism so i think i'm going to get this wrong but i'm going to attempt to answer this anyway i'm pretty sure uh what ends up happening is that uh the optimism network looks at the contract itself and kind of look and kind of looks at the state route of the contract um and what's happened there and then kind of like issues it on the optimism network but i might be butchering that explanation because the technical details uh definitely elude me uh the the deep technical details on this so it's probably worth kind of maybe doing a bit of a google search for that um but essentially yeah the way it's done is is is in a very decentralized and trustless way um i just don't know the the kind of like i guess

raw details because that's definitely getting in the technical side of things and i'm not i haven't looked into that kind of side of it just yet so hopefully that answers those questions for you uh your second question here uh uh from you on the phone says in the past few months axi infinity has exploded in terms of revenue dwarfing almost every protocol on d5 project the only project earning more revenue in the ethereum pro is the ethereum protocol but axia looks poised to take over overtake ethereum very soon first could you define revenue in the context of a d5 project a protocol and a game uh and second could you explain how a single game with which most normally have no exit there exists is on track to generate more revenue than the revenue generated from the entirety of the financial activity on the ethereum network okay

so i think i should answer obviously your first question first will you say could you define revenue in the context of a d5 project a protocol and a game so in the context of a default project there are two different revenue streams here there is the supply side and the demand side now what i mean by this is essentially uh this sorry not the demand side the protocol side so the supply side in for example uniswap is the liquidity provider so the revenue generated by the liquidity providers goes directly to them it does not go to the protocol and then the protocol revenue is basically all the revenue that doesn't go to the liquidity providers and goes to the protocol so maybe sushi swap is a better example here where the 0.25 percent of the fee on each transaction goes to the liquidity providers and 0.05 percent

goes to the protocol so that's kind of like how d5 project revenues are normally kind of i guess um determined there and then you say a protocol like a layer 1 protocol for ethereum the revenue really is just like the gas fees you could technically argue that mavs also revenue for like the you know the stakers or the miners right um so that factors into it as well so i would say gas fees and mev equal the total amount of revenue that um ethereum miners and stakers are kind of generating but also you have to kind of like take out the fees that are being burned right now with 1.59 in place essentially the revenue that the miners and stakers are generating is the tip revenue that they get so not the

base fee which is burned but the tip revenue and then all the mev revenue on top of that so and the ethereum protocol itself is generating revenue based on the amount of fees that are being burned so if there's like 10 million dollars of fees being burned out of a total of 15 million dollars of fees each day that 5 million goes to miners and stakers that 10 million uh basically goes to eath holders right because the eat is being burned which adds deflationary pressure to eath which you know obviously over time it should lead to an increase in the eighth price so that's kind of like how that works there and then you said a game here now let's use axe infinity as an example axi has many different ways to generate revenue in their game the the top ways that they're doing it today

is marketplace fees so every time a buy or sell happens on uh their marketplace that fee goes to the protocol or goes to like a treasury or something like that and breeding fees so in axi uh what you do is you bring different axes together and to create like new ones and things like that um those also go there and i think there's one other lever that they had for generating fees that is currently in place uh but that basically uh goes to the treasury or like the protocol um that the kind of like dao you know in the future if they have a dao things like that kind of vote on there um and then they can in they can implement anything basically to do this right they can implement uh uh kind of like premium features for for users and stuff like that that could

go to the dow um you know they could introduce things like uh basically uh buying uh exclusive items from the team if they want to issue things like that from like the core team or from the dow to raise money and stuff or whatever they could sell tokens from the treasury and and raise money like that there's there's various different things you can do as like value-added services or kind of like premium features or whatever you want to call it whereas with something like a default project they can also do this right they have other levers they can pull they have other kind of like things that they can tap into to generate additional revenue but when it comes to a protocol such as ethereum really i mean ethereum is going to pretty much locked into gen just like the sorry the fees that are

being paid as the main revenue kind of like driver there uh and mev being a complement to that as well but over time we want mev to be as minimized as possible so that revenue will probably go down so really it would be that the fee revenue um at the end of the day for ethereum and as i said you have to split that out into burnt fees and uh fee and fees paid to miners via the tip or stake is in the future and things like that and then hopefully that covers that kind of the first stuff there and then secondly you ask like can i explain how a single game like axi can generate more revenue than the ethereum network well i think you know if you take the nuanced view and see that the axi infinity protocol has multiple different ways to generate

revenue for itself whereas like ethereum as uh sorry x infinity game whereas ethereum as a protocol has one main way and it's not really trying to optimize generating revenue for itself or for the miners and stakers it's optim it's optimizing for just being this kind of like base layer that uh sends all all or enough of that or as much as that value as it can to ether as an asset but then ethers and asset is also reinforced by all the value being generated on top right because it's used in d5 it's used in the nft market it's used for staking all that sort of stuff as well so it's a pretty big difference and i would also say you need to look at the long-term um kind of growth and sustainability of the revenue now actually infinity has gone through a mania lately right

like the last couple months has definitely been a mania for that game now is this sustainable is this going to be something that we see play out over the next year for example are they going to be generating this revenue constantly or growing for for the next year and you say well most normies don't even know it exists yet but it's already generating all this money well we've seen that this can happen during crypto manias where there's a lot of money in this ecosystem uh already and a lot of the money this money gets sloshed around and when you have a good feedback loop like what actually infinity does where uh the token is is pretty is heavily tied to um to the game and also the game the game mechanics also uh encourage uh i guess like the more money that comes in the more axes aboard the more axes of

bread right and then it just kind of like has this feedback loop going uh you generate kind of like this this enormous revenue in a short period of time but i would wager that this isn't going to be sustainable because for it to be sustainable you need fresh money coming in all the time right uh and you know you can argue that this is this is true for ethereum as well and it is right for the gas fees and stuff like that you need people to be willing to spend money on the gas fees to do things on the ethereum network but ethereum is very generalized where it's not just one thing it's everything on ethereum whereas axi is relying on its on one thing and that's and that's the game itself uh if you're you know and the funny thing is is that axi also drives value to ethereum

because the ronin bridge um and all the kind of like axis stuff that happens on ethereum and the nft ecosystem also uh ends up adding burning eth now because all that activity um is generating gas fees which most of them being burnt and things like that so that that's that's just one thing on ethereum right then you have everything else you have all of d5 you have all the other nft stuff you have the dow stuff you have just people doing like uh commerce on on on chain like with stable coins or eth just anything that you can think of on ethereum is being done that's why it makes it sustainable because what ends up happening is that if one area of ethereum is quiet right if one sector is quiet and another one is hot well that kind of balances itself out and you've seen that

actually play out where i think d fly was was quiet for a little while the last two to three months because the market calmed down but then the nft like the the wider market then the nft market kind of went into a mania and then the nft activity on ethereum picked up the slack for the defy kind of farm market um which means that there was more sustainable gas fees and more sustainable revenue for ethereum so that's kind of like how i make the distinction there and i always look at the long term like short term you're always going to see these spikes in things especially during mania phases which sorry excuse me mania is always always popular in in every single mania i've ever seen in any kind of market it always pops and it will come back down to earth and then

you know if it has actual longevity and sustainability it'll it'll continue growing over time uh it might go into other main years along the lines but you know it's not gonna a long line but it's not going to sustain that forever so hopefully that kind of like answers uh those questions there i think you know that was that's a really good question but i think making the distinction here and just looking and seeing in the next year how the revenue of actually infinity compares to what it was during its you know last couple months is going to be very telling to see you know you know how uh kind of like it was a mania and that you know that was good they generated a lot of money but it wasn't very sustainable at the time whereas with ethereum really over the last year and a bit the

gas prices have remained or at least the fees on ethereum have remained quite uh quite high and the revenues remain quite high um even in the really quiet periods like uh june and july was was quite quiet um where the gas fees actually got down to sub 10 way now they're back up to like what 30 or 40 gray or something like that uh because then because like it's the markets heating up but also there's just so many use cases on ethereum using so much uh gas and and obviously with one five five nine now that gas is being burned so it's even kind of like better for ethereum as an ecosystem and for the ether token as well so yeah hopefully that answers your question all right i think you had one last question here uh yeah from from you on the phone again

who says topic rollups is the following statement accurate and if not could you point out its inaccuracies a rollup layer 2 will take a group of transactions and process them in an l2 environment resulting in a new state they will then submit the following information to the l1 a snapshot of the previous state the group of transactions that the l2 would like to batch as one l transaction a compressed snapshot of the new state resulting from the l2 having simulated processing this group of transactions a proof which proves that l2 acted legitimately in its processing of the transactions and reaching the new proposed state yes this is completely accurate i believe uh this is basically describing the act of putting both the data of the of um the activity on the l2 on l1 and it's also describing the act of

putting the proof on l1 as well so that you can prove that that computation was ran at l2 and you can have the data on l1 so that anyone else can run that computation and compare the proof to make sure that it was done correctly and then you have a couple of follow-up questions here you say typically a single transaction on either scan is just one line item aka uh sorry bob transfers one f to alice when the l1 accepts a rollup from l2 does a single transaction in etherscan instead have multiple line items bob transfers one each to alice ryan transfers three david jane swaps 2000 die for one ether on uni swap no no this goes back to what i was saying um or what you just kind of like said in your your um your list here but also what i was

saying before about how the things that end up on l1 from l2s are compressed so if you want to unpack those transactions and you want to see the different light items you have to run that locally yourself can process it on your kind of like computer or whatever and then you'll be able to unpack it just like you would be able to unpack a zip file right when you when you kind of like extract the zip file then you see everything that's in there that's the same thing with with rollups i think that's a that's a pretty good analogy of kind of like um of listening to that sorry of reading that and then to your second question here given that the current state on l1 is changing with every blocked mind so every 15 seconds wouldn't an l2 rollup submission be at risk of getting stale as it needs to

submit a valid snapshot of the current l1 state as part of its request to publish a batch uh so with zk rollups they have to do that they kind of like publish uh pretty much like every ethereum block i believe um uh to kind of like keep their state fresh on there um but with optimistic roll-ups it works differently and this is the trade-off in security models where optimistic roll-ups uh basically take what's called the optimistic approach where they assume everything happening on their l2 is is correct and if anyone wants to uh wants to challenge that they can submit their own uh kind of like state proof to challenge that and then there's kind of like this one week period where there's an arbitration process process that happens whereas essentially well you know say you say okay well i detected fraud here

i have a proof that that fraud existed uh i'm submitting this proof uh now people have to kind of review that do the arbitration process for a week and if it turns out that that fraud fraud kind of like proof basically says well yes there was fraud that occurred on here then the chain corrects itself and it continues on from there but the chain is continuing on during this arbitration process as well whereas if it comes back and the fraud proof was uh was incorrect and it didn't actually happen like that then um the person who put up the fraud proof loses their bond because you have to put up a bond to to do this and that you know that costs them money because the bond is i think usually an eighth or something like that um so yeah those are the two distinctions between like roll-ups

and uh sorry zk roll-ups and optimistic roll-ups uh is that zika roll-ups you know but publish it like every because the state can go stale there um whereas uh optimistic roll-ups optimistically assume that everything is going okay and only they only check it and check their work so to speak when someone submits like a a fraud proof or something like that um otherwise they just like assume everything's running correctly so paradigm has a couple of pieces are breaking this down further if you want to go read those they're very good at breaking this down um so if you just go to paradigms research blog and derebits research blog as well they both have really great pieces covering hell roll ups versus uh sorry zk rollers versus optimistic roll-ups works and how they deal with this kind of like um

this kind of thing that i just described all right your third question here is that how is it that l1 knows how to handle the idea of a proof from a foreign system the l2 is this something that had to be built into l1 to facilitate no so what what um on the technical level what l2 does is it it um basically submits that proof to l1 of course but it uses something called call data which essentially allows that to put the correct data that it needs to onto our one in order to put a put a layer two layer two proof on there and this is called this is just because i think called call data has been in the ethereum virtual machine or at least um the ethereum kind of system for quite a while now um so yeah it was already there but i

think in the future there are different like they're called op codes that that l2 researchers would like to get into the ethereum layer one but as far as i know i don't as far as i know none of them have gone in just yet or maybe some of them have i mean it's kind of hard to keep track of all the different eips and stuff like that but essentially um the foreign system can do this because the functionality is already there on l1 and it's called yeah call data it's basically a um an op code that can be taken advantage of on ethereum to store these sorts of l2 proofs on there so hopefully that answers that question all right on to the next question from monkey king who says how many each do you think you need to live comfortably for the rest of your life

asking if someone approaching 30. um i think this like totally depends on your personal situation right like if you're living in a place where the cost of living is really low then you're going to need a lot less eat than someone who is living in like you know somewhere like australia or the us where the cost of living is really high for example oh i mean there's different parts of the us but i guess like major cities like if you're living in san francisco right for example versus a living in in in another city in the world that's like very very cheap to live in well your your needs are going to be much less so i i don't think there is a one answer you know one size fits all answer for this sort of thing here i i think that you have to kind of like

work out your cost of living work out like and project project that out like if you're 30 you maybe you want to project that out like i mean it's hard projected out like 50 years right like assuming you live to 80 um and you want to live comfortably well as i said you can live like a king in somewhere like bali for example or you can live uh on like very little money or you can live you know not very modestly in something like san francisco uh you just have to kind of like work out that for yourself um and i don't think that maybe it's kind of hard as well because eight is volatile as well so i think living off eighth comfortably uh and if you want to live off if comfortable you'd have to be putting it to work so you'd probably be staking for example

and the staking returns are like what six percent a year denominated in eighth so you would have to have a lot of eighth to kind of like make that worth your while in order to replace like a full-time salary and things like that you'd probably have to have oh if your full-time salary in the u.s is like what i don't know what the average salary is in the u.s in australia it's 80 000 australian dollars so to generate that you would have to have like what six seven hundred thousand but maybe maybe more than that actually more than that i think you'd have to have like a million aud worth of each staking um that that assumes the eighth price is the same uh probably even more than that um to generate kind of like that that to kind of like um uh make up for the

the loss in salary if you just kind of wanted to to chill in your own sort of thing so um yeah but if you cat if you if you like invest in ethan and cash out a big chunk or something like that then it's again it's very different depending on where you live like you you could cash out like a million dollars if you got into you know eat at the right time and you cashed out at the right time and then as i said you can go live like a king in somewhere like bali where the cost of living is really really low or a million dollars isn't going to get you very far in san francisco for example so there's obviously other parts in the world you can live in and things like that but i think that is going to heavily heavily determine

what is actually life-changing money or enough money to live comfortably uh yeah so i i can't really give a one-size-fits-all answer for that all right another question here from johann the forn who says topic cbdc's or central bank digital currencies there was a statistic this year saying something like 80 countries are exploring cbdc's but currently we live in a world where fiat dollars are already digital most of our day-to-day transactions involve digitally receiving sending fiat from our bank account as well as apps such as venmo paypal etc given that fiat is already digital what does it mean when a country like the us says they're exploring the option of a u.s digital currency isn't our currency already digital so you can take two approaches to this you can take the very pessimistic pessimistic approach and say that

uh the these kind of like countries realize that with a cbdc they could have much greater control over the the currency and aka much greater control over the population and much greater surveillance over it because as we all know blockchains are totally transparent um and you can build back doors into stable coins if you want to where you have centralized admin keys and things like that so a cbdc would essentially give i guess like the government if they wanted it total i guess like transparency over the financial system i mean they already have a lot of trans transparency but like total transparency over the financial system where basically cash is outlawed you have like these these natively natively digital currency um and you know they can take the money away from

you whenever they wanted to for example uh if you you know did something wrong i mean there's instances of this happening in china where essentially they have like the social credit score system and things like that uh where they you know they can freeze your accounts at any kind of like time if they want to or take your money and without cash like you don't really have much recourse there if it's with a cbdc but i think that's like the pessimistic approach and and obviously um that's that's the approach that most people will take especially the surveillance aspect to it uh and you know you said that the dollars are already digital well i actually don't think fiat is like a digital currency um you know fiat i mean runs on like i mean the digital fiat still runs on all the old rails they're slow they're clunky things go

missing the bookkeeping's ridiculous like it's just it's just a band-aid upon band-aid system whereas with with a cbdc if you utilize the technology that we have now like like like blockchains and like you know truly digital kind of um currencies then you you get like a lot more features out of it too and a lot more i guess like good and bad features i should put it that way but if you want to take the optimistic approach it's maybe just like these countries being like okay well we need to you know bring finance into the digital age and we need to be at the forefront of this um because i think they do know about defy and they're starting to realize you know how transformative dfi can be and and starting to kind of get their head around it and you know governments will always kind of like take

these approaches like of like uh okay well we need to have control here we need to have um i guess like some kind of rails here we need to make sure that people are using kind of like our currencies and not you know foreign currencies or whatever um and we need to kind of like i guess uh bring our systems into the uh the 21st century onto the digital age to increase our economic output and things like that so i think those are some of the reasons there uh but generally you'll see that a lot of these may not eventuate it may not actually result in anything you know concrete for a long time uh which means that the system that we're building within crypto within d-fi and stuff like that might end up just taking over from sheer network effect which i believe it will

um and you know how many people are actually going to opt into cbdc's if they can use something else uh and have an alternative here maybe that maybe they will because of convenience and maybe the governments will actually roll this out faster than i think and maybe i'm giving like most people too much credit maybe they will just say okay well this is easier i don't care if i'm being tracked whatever i'm just going to use this so there's a lot to think about here a lot to unpack but hopefully that answers you know the bulk of your question there and and kind of like gives you some insight into maybe why uh these countries are exploring cbdc's all right our next question here comes from patrick who says this is a long long one here there's a bunch of stuff in here but i think this

is a good one i'm not convinced that ethereum including sharding layer two solutions and so on will be able to handle the need for scale i see so many challenges for example shouting will bring us specialized shards but what is it what is it good for if we have one perpetual shard one trade shard one nft chart and so on and the composability between them is not um is not the way we need it all right so i i mean i'll read to the rest of this but i will focus on this part first so the way sharding is the the robot for shouting right now with ethereum is that it won't actually work like this where there's one shard for each kind of i guess um a use case it's actually going to be the shards will be data availability layers for layer twos which means that the

shards themselves won't be processing transactions uh they'll be basically acting as data layers for l2s to store their data on and their proofs on and all the computation and everything gets done at the l2 uh and you know instead of i guess like on the shot so the shards won't have an evm or like an ethereum virtual machine or a way to process these sorts of things so there won't be this kind of like i guess um uh difference in in use cases for the different shards uh at least that's the kind of current road map and how how things are going there and then you say you know composability breaks well it it breaks rather whether it's sharding or layer twos but as we've been seeing lately there's a lot of solutions coming out for this uh a lot of them being the bridges right

there's a hot protocol there's connext there's seller network there's plenty of these things coming out now that bridges this liquidity stark wares are working on their dam or the damm which allows people to tap into layer one liquidity from layer two there's there's so much of this stuff going on so i again don't think that's gonna be an issue going forward with composability um so moving on to your next stuff there will be there will be huge costs because of this especially for hand handling all the bridging i mean the cost really is like i don't know how you would describe it right there's obviously like the layer one cost the gas phase and things like that but the bridge operators are going to cover those costs because they're going to be up they're going to be taking a fee right they're going to be taking like a cut

whenever someone uses the bridge and that and that that fee will go into i guess like paying for gas fees if they need to and then taking a profit from that as well but it does remain to be seen how that's going to shake out for sure um and then you know you say i see see so many thought leaders including you being me at keep talking almost blindly optimistic about solving those challenges well i wouldn't say i'm talking about it blindly i would say that i have researched all the available solutions today i have looked at the empirical evidence of the past and like how i've been scaling i've looked at the fact that all of these scaling solutions do actually work today um you know the bridges do work the l2s do work you can go use them right now yes there may be slower to roll out than

we would like but they do work um and that's why i'm so optimistic about it and i guess just a general note that i'm so optimistic as well is because like within ethereum the ethereum ecosystem for as long as i've been in it since early 2017 has hit so many roadblocks like roadblock after roadblock after roadblock and has gone through all of them like and and has gone through all of them relatively quickly as well if you if you really look at things and has gotten stronger because of it and has attracted more and more smart people to the ecosystem because of it so that's where my optimism comes from from the fact that i've been in this ecosystem for so long and i've seen it like all play out basically and i've i've done the research so yeah so hopefully that gives you a bit

of insight into why i'm so optimistic here but like i get it right if maybe if you're new to the ecosystem or maybe if you kind of like think deeply about this stuff and you don't have maybe additional context or anything around this you may think that these things can seem unsolvable but i don't think so i truly think that we're going to solve all of these challenges and we're going to do it in a way that doesn't actually bring like complications for users so yeah hopefully that gives you some more color there and and then you say you know this optim optimism is often along the lines of quote if you can buy an ethereum 2.0 sharding and layer two solutions we will be able to scale there will be bridges all over the place liquid and composibility will be no problem it will be fluid and a healthy ecosystem

uh this is like i guess you you watch the refill a lot that is like almost verbatim what i say on the refuel so that's quite funny but i mean i truly believe that i don't just say that just to like pump my bags i like truly believe that that's like my my view on how it's all gonna work but you're right you know you'll find to be skeptical about it for sure but then you go on to say so your question is let's say we have sharding more layer two solutions more bridges in two to three years what could actually be possible uh please try to answer this question in a non-hype way and don't try to sell me on everything will be great i'm already listening and i'm bullish i would like to learn more about the real possibilities over the next two to three years

and i should note here patrick did say this is going to be a challenging question um but i like these challenging questions so what would actually be possible i guess you can maybe talk about this in terms of transactions per second if you want to as something measurable so i think that what could actually be possible with these l2s when they reach maturity and with sharding in place is a million plus transactions per second across like everything now of course this probably isn't going to be enough uh if you think about like a lot of people like to do the visa comparison where they say okay well there's 40 transact 40 000 transactions per second on the visa network and that's just one network uh ethereum plans to do everything right ethereum wants to do financial activity it wants to be the centerpiece for culture like nfts it

wants to do web3 stuff it wants to do dao stuff like how can we possibly get to the scale required to do that well in two to three years we probably won't be at the scale to do that we will probably only be at the scale to do i think like maybe d5 nft stuff i don't think we'd be at the scale to do uh web 3 stuff in in a major mass adoption way um so you know you're right for that but like longer term i do believe that we will be i do believe that the layer two ecosystem will keep scaling uh via various different means um there's there's kind of like different things we can do with uh with l2 there's different scalability gains we can get there there's different l2 constructions like there's something like zk porter which is taking some security um and

decentralization trade-offs but it allows us to do a hundred thousand transactions per second at l2 without sharding and with sharding i mean you multiply that by like 64 times right you get you get over 6 million uh transactions per second and that's only with 64 shards if we have more shards you get more from there so that's kind of like i'm trying not to be happy about this but like that's just my general tone anyway i'm happy about everything but that's what i can kind of kind of see being possible there now i want to say also that i don't think that the world of that there isn't a world for side chains and there isn't a world for these things that take basically um massive security trade-offs but just bridge into ethereum i think there definitely is a world for that not everything needs ethereum level

security right i think d5 definitely does like 100 think d5 does i think um a lot of nft activity especially the high value stuff does but a lot of stuff doesn't a lot of stuff doesn't need um you know i guess like if you look at ethereum level security it's basically an army protecting you you have like an entire army around you with with complex machinery like if you if you're just doing an analogy to an army complex devices detecting everything like you know it's kind of like ethereum is like the us army and a side chain is like a couple of personal bodyguards for example so not everyone needs the the us army protecting them all the time in everything they do obviously you know when you're being attacked when your country's being attacked you want the army to protect you because uh you know your

most high value kind of like asset is your i guess like safety and your freedom within your country whereas you know you don't need kind of like that level of security for your everyday stuff in every everyday kind of like um uh things that you do in you have like the police for the for the smaller stuff and then you know if you're really paranoid you can obviously hire a personal bodyguard and stuff like that so i mean hopefully that's it that's a that's an analogy that kind of like resonates with people there but that's kind of like how i think about it so there's definitely going to be side chains and they could be called app chains or whatever there's definitely going to be like a l2s that scale really well but in two to three years i don't expect everything to be like super

you know clean and and fluid and everyone's kind of like adopting ethereum and everything's going great i do think it's going to take longer than that i think scaling ethereum is a is is a pretty long marathon to get to the point where we can achieve worldwide scale i would say it's probably still going to take five to ten years from from here but i think that we can uh scale a lot of d5 relatively quickly um in within the next two to three years and i think nfts can also be scaled in that in that um kind of vein as well especially because i expect sharing to be delivered in in that time frame and i expect l2s to be fully rolled out by then and improved upon and approaching their mature not their maturity like the you know 100 maturity state but approaching some level of maturity

within that time as well so yeah thank you for the complicated questions patrick so hopefully those that answers that for you there i'm going to keep moving through the list now so one here from knowledge fight who says how do you manage debt in crypto i think it is ingrained in most of our normie head that debt is bad could you shed some light on some strategies you took especially when the bear market hit in the last cycle so the last cycle i'm going to assume you mean like 2018 2019 i didn't have any debt um i maker had just came out like it came out in december of of 2017. um i not hardly anyone was using it i definitely wasn't using it i was i was still pretty nude back then um in 2017 i focused mostly on the price because it was just easy to focus on the

price but then like in 2018 was when i really started learning about everything in depth but generally i didn't have any debt back then within crypto um so i didn't have to manage anything and how i guess like i i guess like what's orthogonal to that is managing you know the draw down because eth obviously went down 94 in uh from january 2018 to december 2018. the way i managed that is i helped i didn't sell a single eighth in that yeah i still haven't sold a single lead but i didn't sell anything i held all the way down now it became easy for me to hold because i bought pretty much all of my youth under 100 so it was fine but um you know i held and and i just kept learning i kept uh keeping up with the ecosystem i grew my

presence within the ecosystem i kept doing research uh i stopped looking at the charts and things like that i stopped caring about the market and i i i was talking to people every day i was getting to know people networking you know and there wasn't many of us back then it was a really really tight-knit community honestly like you know i started ethub with eric connor in late 2018 and there's a bunch of us just like seriously just getting diving into the tech and staying the course with it so i guess like that's how that was my strategy during the bear market but in terms of like managing debt generally within crypto uh whenever i take debt against my eighth or take out like stable coins against my eth i make sure my liquidation price is really low and i also make sure that i have the

money available to cover that in case for some reason the eth price was to dump to my liquidation price or if however i needed to pay back that debt really quickly um and by doing that essentially what happens is i put my stable coins into like a yield farm for example right and then if the price is crashing and i need to get out of that yield farm i can quickly pay the debt back so i don't go and essentially buy more ether that debt and like leverage trade whatever i don't do any of that but if you were to do that you know there's different ways to manage those positions but that's up to the individual um but you know when i say really low liquidation price i'm pretty sure i have a little bit of debt right now but i i did i i um

i took that out for other reasons i'm not yield farming with it right now um but i have a little bit of debt my liquidation price is under 500 so you know what are the chances of eth going to under 500 i mean basically zero percent from here i mean it can go to under 500 over a long period of time but i doubt that it would be able to go to that in like you know a day for example right before i would be able to pay back the debt so that's kind of like how i manage just don't take on too much debt uh and make sure you can pay it back if something does go go sour and go if the market does go south um and generally i mean this isn't financial advice this is just like life advice i think just maybe stay away

from leverage leverage trading because this is how i've seen most people blow themselves up that i know and lose a lot of their money um their leverage trade and the easiest way to kind of like i guess poison crypto for yourself is losing it all by trying to leverage trade so i guess like that would be my little bit of advice because and leverage trading obviously has a lot to do with debt so that's why i kind of like talk about that but that is definitely something you should keep in mind and keep on top of for sure all right a question here from tuna who says you uh hey anthony you must have been tired from all those eighth killer questions but i specifically wanted to ask this because i think avalanche is currently the only viable option you responded to their burning fee tweet

early on but i want to ask you what do you think about it's consensus mechanism supposedly being better than casper's do you have detailing from the topic thanks in advance i don't have detailed info on the topic i haven't looked into it too too broadly avalanche itself i do know it's a novel mechanism that hasn't been done before i do know that they don't have slashing which i thought was very weird um but i i don't have like specialized knowledge of it i haven't had a chance to look into it yet so i can't really um you know answer that question too much there but i would say that um avalanche is i mean regardless of what consensus mechanism they use they're just an l1 and a c of l ones and i mean i responded to their fee burn tweet for context here um actually no i responded to the

uh peter from geth uh quote tweeting um uh avalanche saying uh basically oh we've been burning eth from like you know the start of our launch or whatever and then peter was saying well we've burned more eth in the first few hours than you guys have burned since you launched the network and then i responded saying that optimism has actually generated more fees over the last 24 hours than than avalanche has and optimism has only been around for like a few weeks right so i was being a bit snarky there of course but yeah that's kind of like the way i view just avalanche and eight killers in general they're like they're really just fighting for scraps you know and before they can even have a shot at it at kind of like coming out ethereum um but in terms of consensus mechanisms i really don't think that's a

differentiating feature i don't think that that's something that's going to you know flip the flip the tide there and basically flip the advantage to one of these ethereum killers uh at the end of the day i really do think that that's a nuanced thing that most people don't really care about and it's not something that people look to when they kind of adopt one of these networks or participate in one of these networks all right question here from and this name is pretty funny uh dildo baggins who says you mentioned a series of a series of basic opsec measures in a recent refuel um i was hoping you could go into a bit deeper detail into this um into the more advanced measures so i haven't prepared anything but i'll go off what's up my off of what i've got on top of my head

so essentially there are a few basic things you can do the most basic thing for opsec within crypto is get a hardware wallet you know ledger nano s or a lattice one just get one because if you're just using a naked metamask that means you have all of your funds in metamask and you're using that to transact well you're exposing yourself to a wide range of attacks right if you get malware on your pc and that malware contains uh something that can get into your metamask or can key log you and you know when you type in your metamask password or can man in the middle attack your minimized transactions what that means is essentially when you send the minimized transaction it replaces it with an attacker's one all that stuff can happen um so you definitely want to get a hardware wallet

to protect against that sort of stuff uh because what a hardware wallet does is it basically keeps your private key on the little device so it's an actual physical hardware device ledger nano s looks like a usb key and the lattice one is a bit more involved it's a bit bigger it's got a screen and everything like that it's got a bunch of other security features too and what ends up happening is that you can still use it with metamask you can do like a pass through and what happens is that you'll submit the transaction on metamask and then it sends the transaction to your hardware wallet and you sign it on your hardware wallet using your private key and your private key never leaves that device it's it's um actually on a on a chip called a secure enclave on the hardware wallet which means that you're protected

against your private key being stolen or anything like that and obviously you have like a seed phrase as your backup when you set up a hardware wallet they give you a seed phrase you write this down on a piece of paper you do not put this into a computer because if you put it into a computer and someone access you access to your computer one day they can get access to these words which is called a seed phrase or a secret phrase and what this does is it allows you or an attacker that gets access to this information to recreate all of your ethereum wallets and have access to all of your funds so you never ever want those words to be seen by anyone but yourself or anyone that you have trusted to kind of like see those words you know see those words maybe it's in your will

or something like that um so that's the first thing and then with the hybrid wallet as well when you're signing the transaction this is a weakness of ledger they don't actually show you the whole transaction that you're signing whereas the lattice one does when when you submit the transaction to your lattice one it will actually show on there that this is the transaction that you're doing you're actually sending these amount of funds to this address and if it's a smart contract integration it will show you the details of that as well whereas with ledger i won't show you all the details so what ends up happening is you can be man in the middle attacked as well where someone can inject the transaction that into your like metamask for example when you're trying to send one and replace that one and you accidentally sign it with your

hardware wallet and then you won't even protect it in the first place so those are that's kind of the number one thing that everyone should do if you do not have a hardware wallet and you have more than a couple hundred dollars or maybe a few hundred dollars to justify the price of the hardware wallet in crypto then you're just playing with fire in in my eyes so that's kind of like the first thing uh the second thing is that you definitely want to have some some firewall uh which pretty much like every windows pc and and mac comes with like firewalls enabled by default you want to have that on you know that's basic protection you want to have windows defender if you're using windows as like an antivirus software um i don't really use things like norton and other stuff like that i just use

windows defender um and you know i i um i have a bunch of other things on there as well i mean i used to work in cyber security so there's a bunch more advanced stuff that i do that i'm not going to go over now because it gets really involved it's got to do with like setting up your router to to only accept like certain incoming connections and things like that i mean there's a lot of complex stuff going on there i'm not going to go into that but um you you don't even need to do that anyway i do that because of my presence in the ecosystem um you know i'm probably more likely to be targeted than most unfortunately but um a hardware wallet works to protect you against pretty much like most attacks which which i think is really important there um and then as i

said you want to uh essentially make sure that any backups of your hardware wallets like seed phrases and all the secret phrases and things like that are written down on a physical piece of paper or you um you can get you can get these things actually you can buy them uh they're basically these metal things where you can essentially like engrave your um not engraved so you can you can basically uh how do i describe it correctly there's um letters you can basically rearrange that form the words in these kind of like metal plates that essentially have your secret phrase on there because obviously and they're fire resistant because obviously with a piece of paper it can be burned if there's a fire in your house or you can lose that or it can get damaged some other way so with these things they're fire

resistant they're water protected uh they're protected against all sorts of things um so that's a really great way of storing it um but also maybe you want to buy a safe too because if you buy a safe and you put your kind of like uh your seed phrase in there well then it's a lot harder for someone to kind of steal that uh and things like that or you can do like decoy things where you can have like a a a a fake secret phase so someone breaks into your house they take the fake one instead of the real one you can get really advanced with this sort of stuff um or you could split up the phrase as well where you can give 12 it's usually like 12 or 24 24 words so you can give half of that to a trusted family member

you keep half for yourself and then when you want to you know use the backup you basically go to them and say hey i need that can i have it please and then you put them together and you you basically get your your full phrase again so there's lots of different little things you can do like that there are more comprehensive guides out there my crypto has a lot of coverage on security and how to protect yourself so definitely go check out my cryptos blog um they've got a lot of different blog posts on there with much more kind of like advanced stuff happening there so but hopefully that gives you just like a a pretty high level overview of what you can do but as i said hardware wallet is a number one thing that everyone listening to this should do uh right now literally go right now to like

ledger's website um or grid plus lattice is what it's called their website as well check it out buy it you know set it up and and move your funds onto there that's the easiest way to protect yourself without getting too complicated about things all right so a question here from ben fallows who says should i move move my eath to arbitrary optimism instead of living it on ethereum where fees may arise so high in the future that it isn't cost effective to remove them so this is a funny question actually um it depends right like i think it is funny because if you think about these l2s they're going to have bridges to centralize exchanges so if you were to put your ethon to optimism for example and then there's an

optimism centralized exchange bridge and then then you can send it there to cash out then yeah maybe it's worth it if you you kind of plan to i guess like move these funds later on cash them out to fiat or i guess like you want to do more stuff with it then yeah that does make sense to kind of move to these l2s but also there was a proposal not a proposal but there was like a discussion i think a while back that was happening where essentially the i think there were some researchers in the ethereum community discussing hey what if we did something where we basically unfroze everyone's funds on l1 that were frozen because it costs more to move them than it does than it does the value of the actual funds on there and the way this would work

was that essentially it would basically move all those funds to l2 and the problem with this is like how do you know which l2 to move them to this means you're actually touching user funds right and you're actually moving user funds without the consent and things like that so obviously that idea probably wouldn't work in practice and probably wouldn't actually happen in practice to be honest um but that was just a funny little kind of discussion there like how to do this so i guess yeah the tldr is definitely if you're worried about the fees getting too high move your funds to an l2 and they should be good there but you are moving them into something that is uh that has security tradeoffs because as i've said many different times on the refuels arbitrary and optimism are completely centralized and they will be for quite a while because they have

admin keys they have upgradable contracts they are not at their final stage just yet they're very early there's risks associated with them but if you're comfortable with that sort of stuff then yeah feel free to do that but if at the same time and you know i think it's it's funny that i'm actually saying this i would actually say at this early stage it might even be worth just sending your funds to a centralized exchange like coinbase and keeping them there if you're worried about things um pricing you out of layer one because as i said like arbitrary optimism is still very early you're going to have the same risk profile because it's centralized as well um and things like that but i guess with alberta albuquerque optimism you also have the option of um withdrawing your funds on l1 if their l2s go down because they are a true l2

so yeah there's a there's a few different trade-offs here to consider but if you're really concerned yeah i guess move to l2 or maybe even a centralized exchange if it's something that you're going to sell in the foreseeable future as well all right a couple of questions here from brian peace so first one you mentioned that the last major upgrade on the roadmap roadmap after the merge will be snarkifying the base layer can you explain what this means um so i wouldn't say it's the last major upgrade it really is more one of the long term upgrades over the next five to ten years uh who knows what the last upgrade is going to be on large major last major upgrade on the roadmap there's i'm pretty sure the ethereum researchers are just going to keep adding items to that roadmap forever um but essentially what i mean by

snarkifying the base layer snark or snark they're kind of like a cryptographic proof similar to stocks and this is basically what's a zero knowledge proof this is very similar to zk right like zk stocks zk snarks and snark is an acronym i don't remember what it stands for right now but essentially what it means is um being able to do i guess like a similar thing that you do on l2 to compress transactions to get more scalability on the base layer i think vitalik wrote a post in 2018 maybe if i remember incorrectly where he said that we could potentially get 500 transactions per second on layer one by snarkifying the base layer so on each shard it would apply to each shard but

essentially today um each shard would have 15 transactions per second or example like eth1 has 15 transactions per second or probably a bit more than that because the gas limit went up to 15 million a while ago but um what could happen is that we could get that all the way up to 500 transactions per second by sniping the base layer and the technical details are very advanced because this is all advanced cryptography so i i don't i you know i don't understand how it works under the hood but but at a higher level it's basically um compressing these transactions like you do on layer two to kind of like eek out more scalability there so yeah hopefully that answers that question and your second question you've mentioned that we need to decentralize the full stack hosting with ipfs and filecoin more and on devs etc this made me wonder is git

github a point of vulnerability are are these important code bases backed up elsewhere yes github is definitely an point of vulnerability for all these projects they should have local backups or they should be using a decentralized storage solution to store these sorts of things you know they already do i think but it's funny when you think about like the ethereum code base well that's just ethereum right like if you're running in ethereum full node and you're running the software then you have ethereum and if it goes down on github you can kind of recreate it from there but definitely we want as many projects that exist on github to have backups and those backups to be created whenever the i guess like repository changes on github so yeah good question there there's a few kind of like projects

working on decentralized githubs and and kind of like these sorts of things i think the one that um this is the most popular is called oh man i can't remember the name of it right now but i know there's one out there it's very popular um and it's being used uh i think by by various devs i can't remember exactly the name now and it's god it's gonna drive me crazy that i can't remember what the name is now but but yeah there is definitely one out there if anyone knows that you know feel free to just put it in like the chat um in the ama series channel there um but yeah there is there is projects kind of working on this as well right now all right next one comes from matt who says in your opinion is it still working towards 32 and sticking with your own

node i mean yes uh if you can afford it like that's as simple as that i mean i i can't tell someone to go hey go buy 30 for 100 000 just so you can stake on your own i mean it's just it's so out of reach for most people now and i understand that and it's just unfortunate that that's the way it is um but you know hopefully some of these decentralized staking solutions like rocket pool work out you know we're gonna have to see how that plays out um but you know i still think that's worth working towards 32 if you can if you can if you can't well then that's fine too just like if you want to buy you know as much as you can then do that as well but that's totally up to you but i do realize that it's now out of

reach and it's going to continue to be out of reach for most people i mean i obviously expect the earth price to go much higher from where it is today so to a lot of people and you know maybe it gets to a day where the minimum eighth amount gets reduced maybe it gets reduced to something like 16 instead of 32 eighth but even then still out of the reach for most people and this is done for security this isn't done to exclude people um this is done because of the fact that we need a security bond on there and it's also based on the validate account so it i mean without getting too technical here it's basically a way to to load balance the validators on the beacon chain but yeah i guess like tldr it's worth working towards it don't feel too bad if you can't get there it

is a lot of money these days and i totally understand if people can't get to 32 eth all right so one hear from alice alice coltrane who says when will there be ethereum marketing what does decentralized marketing look like uh there will never be centralized ethereum marketing or a centralized push from any kind of body like the ethereum foundation or consensus or anything like that we already have a decentralized marketing community within ethereum everyone on twitter talking about ethereum is ethereum's marketing arm everyone producing educational content whether that be the daily gray ether bankless the defiant defined dad countless others out there they are marketing ethereum every project that is doing um marketing for their own project is marketing ethereum all of that coming together that is what decentralized

marketing is you have thousands tens of thousands of different people all marketing different things all coming back to home base being ethereum um that is kind of like what it is you're never going to see places like the ethereum foundation do um you know big marketing pushes or anything like that they may give grants to some of these um people that do marketing as like part of their uh kind of like orthogonal kind of activities but yeah that's kind of like how marketing works within ethereum and you know you'll see mainstream media cover ethereum as well that's marketing so yeah there's no centralized push there and it's really cool that we already have like a pretty you know decentralized marketing ecosystem within ethereum all right next question from dumplings who says is it worth getting an ens address and how do i do it uh i think so

yes uh you can do it by just going to the ens website you can just google that um and on there you can just like register your own kind of like ens tie it to your ethereum address but i would caution against doing it unless you want everything tied to that address being public so if you give that ethereum that ens name to someone they'll be able to see everything that is happening on that address because they can go and eat the scan and look through it and everything like that same with anyone else like for example sassel.eth is my public ens address i accidentally uh claimed my git coin airdropped with my sazel.etherdress so now everyone can see my my really big coin airdrop on there and i you know i'm obviously not a fan of that but what can i do um so you have to be really careful

about these things and you have to be careful not to tie your ens address to another public address that you've got oh sorry another private address that you've got because then it's automatically made public as well um but yeah generally i think it's worth it if you take all those things in consider into consideration and as i said you can get one by going to um by just googling ens um and you know or the ethereum name service and it'll come up with the website there and you'll be able to kind of like um do it there so a question here from con lemony uh limani i think that's how you say it can you talk about competing senate amendments and impact on the eighth ecosystem okay this is the regulation stuff yeah we went through this at the start of um of this ama but essentially like the

trdr is that there's two competing amendments right now it's being voted on today i don't know if it's being voted on yet um but essentially one of them is really bad for crypto one of them's okay for crypto we want the one that's okay for crypto to go in and obviously we want the one that's really bad for crypto not to go in the one that's really bad for crypto um it only exempts proof of work from uh the the new kind of like regulations not proof of stake or any of the other kind of activities but the one that's that's good for crypto or at least okay for crypto um you know covers a much broader kind of like set of actors within the ecosystem so one here from brit are you familiar with at all with the the uma project i would love to hear your take on what

they do as many folks folks find it a bit confusing to wrap their head around i know of the uma project i wouldn't say i am knowledgeable enough to give like a full breakdown but essentially they're a synthetic asset project where you can basically create synthetic assets for anything essentially and what a synthetic asset is is it's basically um you know for example when you put eth into maker to mint die you're meeting a synthetic us dollar because your a diet is like an asset created by by backing it with eath and it is pegged to a dollar so you can say it's creating a synthetic dollar um then you know for example on on the synthetics ecosystem uh if you put eth in there or you put snx in there as collateral you can mint say s tesla which is a synthetic

representation of tesla the obviously the tesla stock which means it is not actual tesla stock it's just like a a price ticker essentially where an oracle updates the price of it by holding a synthetic tesla you get exposure to the tesla price and you can also use it within the ecosystem so same for uma i know the uma is doing a bunch of other uh kind of things in this ecosystem too but i haven't dived too deep into that project specifically so i can't probably give too much color there but hopefully that answers like from a high level what like a synthetic acid is and and what synthetic asset protocols kind of do all right a question here from morgan who says do you think l1 and ft's are inherently more valuable than polygon on other l2 nfts okay i answered this earlier as well from another person

um you know if if you're just watching this on youtube you can check out the timestamps to get the answer to your question um i'm just scrolling through my list here to see who asked that question i think it was andreas so if you go to the question asked by andreas if you're looking at the timestamps you'll be able to find the answer that question morgan all right one here from lloyd banksy who says can you explain please explain the business model for get coin i don't get how they intend on monetizing which i assume is an expectation of gtc holders so i don't think there's like a business model that's kind of like being developed just yet i think it's really up to the yeah the gtc token holders the dow and everything like that um i can't really speak to anything because i haven't seen anything you know

materialize in that area in terms of like bitcoin the dow's business model as i said that's determined by gtc holders or like community members in terms of get coin the the kind of like core team building it they could do different things to monetize and stuff like that but and like different business models but generally i would you know if i had to guess i would suspect that taking a fee from transactions on the get coin kind of like protocol like git coin grants and stuff like that um but you know who knows right like you'd have to read the bitcoin governance firm to see if they've been talking about this i haven't been following it too closely but i don't think anything like concrete has materialized just yet in that area all right uh final question on my sheet and then i think i have some more on the

discord channel but essentially dim sum asks please do the daily great intro okay all right i'll do the deadly great intro just for you um and then i'll move on to some other questions so let me just let me just get into it hello everyone and welcome to another episode of the daily wave refuel i'm your host oh i actually screwed it up i never screwed up that intro before and now i'm screwing it up because i'm not in my normal kind of flow here jesus sorry um i'll go through it again hello everyone and welcome to another episode of the daily way refuel where recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the 9th of august 2021.

i think i screwed up the date there actually but yeah hopefully that that uh that satisfied your needs dim sum i'm sure all of you have heard that many times on the refuel before uh okay uh i got a few other questions here on the uh the channel that i'm gonna be um i'm gonna be answering and then uh we can probably wrap it up unless anyone else has other questions uh so one here from m titus6 who says how long until while to be ready for eip1559 this is going to be a gradual process uh i think metamask said they're going to be rolling out to most users next week uh a lot of other wallets um have support already like my crypto i know that i think rainbow wallet has support i mean generally they'll be supporting over the coming weeks i mean i guess that's the um

that's the kind of like broad answer i can give here but i guess metamask is the most important since most of us use that they're rolling it out next week uh one here from uh on the ball who says how do you think nft prices will react to rising or falling eath prices this is hard to tell actually um you know sometimes the nfts are priced in eighth like crypto punks do really well whether it's going up or down um but it's like over the long term just generally it's really hard to outperform eth right by buying any assets so it's going to be really hard to see or really difficult to know like which um nft uh you know nfts hold their value in each versus which don't because i think a lot of the nfts issued today are just money grabs really and people just speculating on them

as well so they may just like trade back to eath so they'll probably end up losing their value in eighth but things like crypto punks and some other ones out there they might they may outperform eth because of um you know various different reasons that i gave before about why crypto crypto punks are valuable so yeah how uh hopefully that answers your question there all right so one here from max8 who says how to value nfts just your perspective for new ones trying to get a taste of it so it's really hard because as i said a lot of the nfts these days are either money grabs or they are just being speculated on and they just kind of like kind of resemble a pump and dump sometimes if i would use that term um so that's kind of like how i'm viewing a lot of them but in terms of

the ones that i do value something like a crypto punk i mean i i mean i have one punk that i kind of minted from the contract in 2017. i didn't buy any others but i was gonna buy more earlier this year i just didn't end up doing it and that was because i mean nfts to me are valued mostly on their law or culture surrounding the nft that's why i think crypto punks are so popular and so valuable is that there's a very good story behind it um you know there's it's obviously very scarce there are various different kind of um punks you can own and people kind of like create make punks their identity and it's kind of like your digital identity sort of thing so that's kind of like how i how i look at um you know nft projects in terms of like collectibles

but then there's other nft projects like nfts as part of video games and that's even harder because you know you're betting on the game being popular too when you buy those nfts so hopefully that just gives like a high level perspective there i wouldn't say i'm an expert on how they value nft especially when it comes to the art nfts i would follow someone like dc investor he has a as a knack for it but art nft is like i really don't know i'm not into art at all like i i really just do not know how to value those things and and some of the things that i'm seeing i'm just like wow why is anyone paying this for this so uh yeah uh your next point here is that d5 and nft collaboration bridging coexistence for for the future uh yes i i think so and i think we're

already seeing this happen there's various projects out there that uh i would consider to be defy such as the nftx protocol which basically allows people to add liquidity to their indexes and and trade nfts there's fractional which allows people to split up their nfts and trade them on open markets plenty of collaboration in the dfi nf and nft space um happening already and going to be happening in the future and your last question any technical hindrance of nft lending on d5 protocols um i don't think technical i think it's pretty easily technically interplanetary mentored it's more about the um i guess like economical side of it so obviously when you use an nfts clutter on a lending protocol um what ends up happening is that you the lending protocol needs to be sure that it can liquidate that nft to cover

your debt if the time comes so liquidity is obviously the biggest issue there when it comes to that sort of stuff but ave is working on that so um so i think that's really cool there so hopefully that answers your questions backs all right on to one from project 2501 um if you have a ledger currently but then get a lattice one when you set up the lattice one with the ledger wallet seed phrase does that make the ledger redundant or can you still use both the ledger and the lattice one for the same wallet or will it cause a conflict on metamask or generally if swapping between them using them interchangeably it shouldn't cause a conflict you'd be able to use both of them and you can test this as well with like different ledges if you have multiple ledgers um because you just you're just

basically using the same kind of like i guess like private keys and same addresses in different um in different areas so yeah no it doesn't it doesn't like um it doesn't erase the other one you can still use it from both essentially marco says get lab or decentralized github get human no it's a specific crypto project i can't remember the exact name i'm sure i'll find it later um oh man what is it it's it's i mean it launched the other day too and i'm i'm getting annoyed now that i can't remember it but i'll come to me um hippopotamus says any thoughts on the practical usage of eighth irl i have the ability to add crypto payments as an option on a checkout used by thousands of people nationwide in the u.s if only stripe offered an integration i want to do my part but there is no clear

solution i don't think eighth is going to be a good currency to be honest i i really do think that um eth is going to be a really great collateral asset and a really great um staking asset but i don't really um think that you'd be using ether's money i mean i think eth can be used as money but i think like as we go forward obviously stable coins are going to be the preferred method of like money and currency and all that sort of stuff um but i think the advantage of using ether's money in some countries is that it's actually tax exempt under a certain amount so i know in australia if the last time i checked at least i hope this is still true um but you know if you use your crypto to purchase something uh and it's under 10 under a ten thousand dollar purchase

you're exempt from capital gains tax on that so if you made a capital gain on that eighth um uh you basically uh you're basically able to uh get exempt from that so you don't have to pay tax on that because you've actually used it to purchase something so um yeah i mean hopefully that answers your question uh i think in terms of like a clear solution for how people are gonna use crypto generally in uh real life i think it's just gonna be stable coins really at the end of the day um in terms of like using it as money and stuff like that all right think decade last question here he uh they say any thought on the dydx blacklisting us citizens on the airdrop if decentralized protocols are able to blacklist users from a particular geographic location are they really decentralized i spoke about this on the refuel last

week and i actually went on a bit of a rant about this but i wasn't targeting iran at dydx i was targeting at the um us regulations i'm not going to go on the rant again you can go watch the refuel if you want to see i see me you know rant on about the regulations there but to answer your specific question uh if it's actually decentralized well i mean it's funny because the the issuance of the token isn't decentralized right like the idx issuing their token they're doing it centrally they're doing it as part of like the dydex foundation whatever they're calling it so the protocol itself can still be decentralized but the token you know being issued in a centralized way at one point of time can be okay like if you think about it

the ethereum ico was done in a centralized way because it was managed by a centralized party being the ethereum foundation um so and that doesn't mean that ethereum was centralized so i think there's there's definitely this distinction to be made there um and but there's a lot of other things you can kind of like point to for centralization like dydx um basically maintains total control over their layer two protocol that they've got right now because there's no tokens so there's no way to decentralize it just yet and they have like admin and upgrade keys and all that sort of stuff um and even though you can like get your funds back on layer two they still have ways to kind of i guess um a mess with that if they wanted to and just generally with d5 i mean there's so many different things when you consider

what's decentralized what's not uh most of it isn't decentralized today and simply because we're very early for a lot of these protocols as well but i have never thought about like you know i guess like who the token gets airdropped to is really one of those things because once the token airdrop is done then it's done right there's no more kind of like um i mean unless the team has a backdoor in the token contract or whatever they can't do anything from then on they've sent the tokens out people have the tokens that's kind of it so yeah hopefully that answers your question and the last question here actually from tuna is a follow-up question about dydx any get a price guess on the token uh no i've got no idea i mean if you want to do a comparable go look at perpetual exchanges market cap

um and compare it to dydx because uh perpetual uh sorry perpetual protocol is a is a layer two perpetual protocol that is similar to the oidx if you wanna do a comparable market cap to them then that's kind of like maybe something you can do uh but like i know i have no idea what the uh what the the token price will be um especially because it depends on a lot of things right it depends on what kind of market um the token starts trading in is the market gonna be really hot it depends like what exchanges list it like is coinbase gonna list it on day one sort of thing um and it depends you know on how much people kind of like sell on the first day tell their airdrops like how volatile it's going to be there's a lot of different things to

consider but if you want to do a comparable um i guess valuation you can go look at perpetual protocol um on coin market cap look at their fully diluted value evaluation and then kind of like map that to diy dx and see what happens there all right i think that is it for the ama unless anyone has any last final questions you can put up your hand i'll be happy to answer them if not i think i'm going to wrap it up here so i'll give like 10 seconds and then i'll wrap it up all right i lied i'm not going to wait 10 seconds i'm going to wrap it up since no one is raising their hands so yeah thank you everyone for attending the seventh delegate ama if you came in late you can definitely check this out on youtube it'll be uploaded within 24 hours with

timestamps and the next one will be two weeks from now uh so yes thank you everyone i'll see you in the discord channel