EIP-4844 is awesome, Bullish ETH and more - The Daily Gwei Refuel #737 - Ethereum Updates

Transcript

hello everyone welcome to another episode of the delway refuel where up latest news etherum ecosystem I'm your host Anthony Sano to the 26th of February 2024 right everyone let's get into it so kicking off today uh it's 2 and a half weeks or less than two and a half weeks before denune goes live on the ethereum mainnet so I thought I'd recap why I'm most excited about EIP 4844 you know what do I think are the most awesome things about it and it turns out there's actually a lot like obviously you guys know that EIP 4844 has been kind of like trotted out as this scal solution for rollups and it definitely is but it does come with more than that so I put out this list on Twitter today where I said that uh Erp 4844 adds a new transaction type to ethereum called blobs that is

purpose-built to enable cheaper fees for Roll-Ups and layer twos and I think that purpose-built section of what I said there is the most important because yeah it has been purpose-built for uh for rollups and layer tws uh and I know that I've said in the past that it can be used for other things such as you know inscriptions and I'm sure people are going to be using them for that and and other such things like that but it's been purpose built for for rups and layer 2 like that's the whole point of them and I think over the longer term then the rollups and rollups I guess layer twos generally are going to be the only kind of entities using them because the inscription stuff doesn't really make much sense I mean the blobs expire after 18 days right so it doesn't really make much sense to inscribe something uh

since the whole point of inscriptions is to uh have something that lasts forever that's not going to happen with uh with blobs right and then I say blobs have their own separate fee Market which means they are unaffected by fee spikes of non- blob transactions on layer one this is something that I don't see talked about enough and I actually think this is the main highlight of blobs generally yeah okay the scalability stuff's awesome of course but I think that this is more of a scalability boost or at least something that is uh more important uh to The Wider ethereum ecosystem than uh blobs themselves the that blobs themselves because of the fact that this is the first time I believe that eth is going to have what's starting to look like a multi-dimensional fee Market which is

what balic has written about before and it's basically this concept of local fee markets now I know some other chains have them most notably salana but I think sana's implementation is definitely different they have this kind of notion of hotspots uh and it's Def and definitely they are metering things in a different way to what ethereum is I think ethereum is taking a simpler approach here where essentially know blobs have their own separate fee Market uh with their own gas price and everything else has has the you know the normal fee Market that we're all used through and practice the way this would work is let's say that gas the normal gas not the blob gas is at 20 gray and then that spikes up to 100 gray well today because rollups use Co data which is part of the normal gas market uh that

means rollups are affected by this gas Spike you know they have to basically pay the the the 100 gray gas fees but when blobs are introduced and if these rups are using blobs then the blob fee Market would stay at whatever it was at at the time so if the The non- Blob fee Market goes up to 100 gay The Blob fee Market would stay at if it was let's just say if it was at 5 it would stay at 5 there would be no connection between the two markets and that to me is is really awesome because it means that rollups no longer have to deal with ler one Fe spikes and we all know that layer 1 fee spikes uh mostly due to random things like nft mints and meme coins and stuff like that right so rups no longer have to deal with that sort of stuff

which is great I think that's one of the the the the the best features of of blobs if not the best feature honestly and it's not talked about enough so that's why I wanted to to bring it up today now of course as I mentioned blobs expire after 18 days which means that the increased storage burden on ethereum full nodes is very minimal so that preserves decentralization and this is the the real superpower of of blobs I think uh in terms of how it scales without sacrificing decentralization is that it it is purpose built for rollups right it creates a new separate fee Market but then on top of that because of the fact that blobs are basically adding more storage to the network we didn't want to kick people off the network for storing them and because basically if you're storing like historical state of of blobs there's

only a few use cases for that I mean obviously the biggest one is data analysis being able to analyze what happened on the chain in the past but also I think taxes is another big one where people want to go back and see what transactions they have uh for taxes uh but most people do that through third party Services right like ether scan and other such things they don't do it running their own archive node for example for ethereum L1 so the same is going to be true of these l2s the and and the and the blobs the blobs are just going to be stored by their service providers and then they'll be able to serve that that information to people who need it whether they charge for it or or not is up to them of course uh and the be beautiful thing about blobs is

that there a oneof end trust assumption which means you only need one honest party to be storing that data and that honest party can be you which is awesome right uh but the fact that they expire means that we can get a lot more scalability out of them than we otherwise would have uh because it means that after 18 days a full node a normal full ethereum node will just Purge this from from its uh database and then you won't have to have increased kind of node requirements but if we didn't do this there would be increased node requirements I don't know the exact math off top of my head but blobs do add a pretty significant uh amount of storage to the database uh I think in the terabytes per year or something like that uh and because they expire that is obviously very manageable there um and

then on my next point I said you know increasing the number and size of blobs is trivially easy and can be done at every hard Fork going forward and this again falls into what I was saying about them expiring because they expire we can just keep increasing them as time goes on as more people get uh kind of like comfortable uh with blobs as the network becomes comfortable with blobs and as we see that there's more need for them uh because obviously at some point they'll they'll become saturated uh then we can keep increasing them at every hard fork and there also is a way I believe to do this without a hard Fork not sure if that was implemented I remember I highlighted that Terren from prabs had written something called EIP 4844 plus I believe uh which is essentially being able to increase the size I think of

blobs maybe not the number of blobs but the size of blobs without having to do a hard Fork so again that would be very very cool to do to be able to do as well but the fact that we can do it at every hard fork in a really triy easy way or all it is is adjusting a couple of um couple of variables uh is a huge is huge because that just gives extra space to these rollups drops their fees potentially even more than what we'll see post denune uh and then we can do that uh uh at every upgrade after denune goes live of course and then finally here I said Erp 4844 lays the ground workor for full dank sharding with data availability sampling that will enable even greater scalability for layer 2os so the holy gra really is data availability sampling with uh blob

expiry so what essentially this would give us uh because the blobs expire we get to preserve decentralization as I as I described and on top of that you have the the fact that with data availability sampling only a uh a sub a small part of the um I guess like node operator set needs to hold a small part of the total um the total data that's being produced by these blobs uh in order to satisy ify the data availability commitment up to 18 days or whatever the blob expiry is set to at that point that enables us to essentially increase the size and number of blobs uh substantially and I I don't know the exact numbers off the top of my head of course but substantially and this this potentially gives us a 100 to 1,000 times scalability increase for for

rollups of course and then couple that with things like The Verge and statelessness I think valal spoken about this before we could see 100,000 plus transactions per second on these rollups uh combined which would be very very cool of course but obviously TPS is and everything and not all TPS is created equal as I've talked about before there is the whole kind of notion of uh the fact that I believe blockchains are a root of trust so there is going to be a lot of compression going on these rollups to to to kind of like compress that down to L1 and so on and so forth uh from there but yeah that's a quick recap on EIP 4844 why I'm so excited about it why it's awesome it is not a small upgrade that's for sure it is a large upgrade with a lot of implications

for the network and I'm just super excited to see it go live on March 13th obviously as part of the denune upgrade because of the fact that we finally get to see what kind of I guess um what kind of uh cost reduction we see on these rollups uh because we have only speculation to go off right now we don't know it's it's it's impossible to know because we have obviously blobs running on test Nets but that's a test net environment completely different to what it is on mainnet so we're not going to know until it's live on mainnet but it's it's shortly coming you know less than 2 and a half weeks as I said so we'll know soon rather than later all right so speaking of denune there's another EIP that I wanted to highlight for you guys and I did think that I I did forget to highlight this

because I thought that this EIP was actually going to be part of Petra I actually didn't even realize it was part of denune because I've been so focused on 4844 that I didn't even realize this e was coming as part of denune so this is EIP 4788 now of course it's probably something that I don't think I've ever mentioned on the refuel in the context of denu I think I've mentioned that a while ago in the context of what it can enable but essentially what this EIP does is it improves communication between the execution and consensus layers of ethereum basically creating an quote unquote enshrined Oracle this enables trustless communication between the CL and the E which has a huge impact on staking pools like rocker pool no longer will they have to rely on a third party Oracle to pass information such as

the status of a validator from the consensus layer to the execution layer it may not seem like it on the surface but this is a huge unlock for ethereum staking generally and very excited to see this EIP go live with denune now I just want to break this down a bit further for you guys because you may be confused about why this is so exciting so a lot of you will know that currently within Rocka poool there is this Oracle da that I am personally a part of and there's a bunch of other members that are part of it now this Oracle da the whole point of them or at least most of the point of of the Oracle di is to pass information from the consensus layer to the execution layer so that rocker pool can work part of that information is something like validator balances or

when a validator is exited from from the validator Set uh you know if they're part of the Rocka pool um uh uh system there and the reason why that has to be done via a trusted Oracle or a group of people that are part of a trusted Oracle is because we don't have that communication between the execution layer and the consensus layer with this iip we will have that communication now I don't think the Oracle da is being um a sunset uh you know immediately after denune I believe rockero has to upgrade their system in order to take advantage of this new EIP but that will happen and then most of the duties that the Oracle da is doing today will be able to be done trustless because this Oracle is now enshrined in the protocol it basically means that uh there's no need to trust this Oracle d uh which is

awesome obviously and this it doesn't just apply to rockol it applies to basically any service out there that uses this I believe that lier even uses this as part of their kind of system and a bunch of other services out there don't quote me on that of course but I mean there's currently no other way to pass information around now from the consensus layer to the execution layer around things like validator uh balances and the status of a validator so but they will be with EIP 4788 so I actually consider this EIP to be the second most exciting after EIP 4844 and as I said the reason why I hadn't highlighted it yet or up until this point is because for some reason it slipped through the cracks and I didn't realize it was becoming part of denune silly me for focusing too much on 4844 but hey it's

awesome that this is coming with um with denune this means that we can have more trustless staking pools here and then there are two other eips I believe coming as part of Petra or at least slated for inclusion as part of Petra I should say um which are going to enable trustless withdrawals for validators which essentially means that instead of having to trust a um a service uh like a staking pool for example like rocker pool or Lio to withdraw the validator for you when you request a withdrawal you can now do that well after it's after the IP goes in in Petra you can do that trustless using the execution layer so just sending a transaction on chain and then you'll be able to exit it and they won't be able to stop you from doing that so yeah a bunch of huge upgrades coming to staking over the next

couple of UPG uh next couple of hard for I should say uh so it's great to to see that playing out there all right another research post from Mike nuda man this guy's on fire he's been putting out research posts around a bunch of different topics for a while now and if you guys haven't actually watched the uh the ethereum road map uh update episode on bankless with Mike and dooy you should definitely go check that out they're both gigar brains and I learned a lot from them listening to that podcast that I didn't already know of course but Mike published this post alongside uh someone called Max Resnik who works at uh special Mech uh who's the head of research there so what this post is it's all about concurrent block proposes in ethereum now of course there's an abstract at the top for you to read and

there's also the whole post for you to read but essentially from what I read from this post is that why you would want to do this uh is basically to in uh I guess like increase censorship resistant guarantees um and I think that by doing that uh obviously coupled with things like inclusion list and a bunch of the other stuff that we have with censorship resistance or working on with censorship resistance it really does strengthen uh kind of ethereum's CR properties pretty substantially I think and you know I I posted this in the daily way Discord channel the other day uh but essentially uh you know gry stroke someone who's uh very active in the daily Discord channel uh is very passionate about privacy and very very passionate about censorship resistance and he was kind of uh I was having a

back and forth with him about inclusion lists and where we kind of like agreed and disagreed and then uh he was talking about things like stealth addressed and encrypted mles uh and how those things are really interesting and those things are more interesting to him than something like inclusion lists and those things are both being worked on in the context of ethereum as well I mean I highlighted stealth addresses I believed last week on a refuel there's a paper that was put out by Tony and and colleagues there uh and then encrypted mol's shutter Network I've highlighted a bunch of times before as well so these things are in development so we have inclusion lists we have stealth addresses we have encrypted mols we have epbs which isn't really about sensorship resistance at its heart it's more about just like getting rid of the relay role

because the relay role in the meev Boost pipeline is just shitty for a number of different reasons but it does have the added benefit of uh potentially and most more more likely than not improving sensorship resistance on ethereum and now we have this concurrent block proposes kind of idea uh which should increase censorship resistance even more so we have like four things that I just named there's probably more than four to be honest but there's like four things right now that are being worked on in parallel in order to improve ethereum sensorship resistance and as I've discussed before I think I discussed this on last week's one of last week's episodes the whole point of a blockchain is censorship resistance in my eyes like if you don't have that then you may as well just create a centralized database and you you you'd be much better off

doing that there's no point having a blockchain if it is not maximally censorship resistant in my that's my true bif here because really at the end of the day like that's the value you get for giving up all the other stuff that a blockchain is really shitty at such as you know being being being fast being uh cheap to use so on and so forth you give up all of that and you you basically purposely shoot yourself in the foot uh in order to gain that censorship resistant uh property uh so I yeah as I said last week that is the most important thing and I'm really really encouraged to see just how many things are being worked on in parallel to improve ethereum sensorship resistance because it has been tested you know since um ofac sanction tornado cach back in August of 2022 I believe I think it

was August 8th 2022 and the reason I remember the date is because that's my anniversary with my fiance it's kind of funny how how that that uh that that fell on the same date there um but yeah August 8th I believe 2022 is when tornado cach got sanctioned and since then there's just been a massive kind of amount of uh um attension being been put on sensorship resistance on ethereum and I think that the common belief amongst uh you know a lot of the ethereum uh is that sensorship resistance is the most important property it is what we should be optimizing for and that's what we're doing with a bunch of these things so anyway you can go give this research post read I'll link it in the YouTube description below for you to do so all right so a couple of weeks ago I believe

I spoke about how Rocka pool is currently undergoing some massive changes and that Rocka pool is going to have a quote unquote Revenge Arc over the next 12 to 18 months and I highlighted the upgrades back then that were coming or that were proposed now wack on Twitter today put out a great thread uh all about the new toomics proposal for Rocka pool and for the RPL token now I've touched on this before briefly wack does an excellent job breaking this whole thing down in his thread I'll link it in the YouTube description below but I just wanted to put this on your radar because I know there are a lot of RPL holders amongst you guys and I'm one myself of course but like I don't you know try to encourage anyone to like buy or sell or try and trade RPL or any or really any

token uh besides eth I guess like it's kind of hard for me not to to come off like super bullish on on eth and and for me to not to kind of like come off as me encouraging you to buy eth which I'm not by the way but like my I think my bullish energy is contain contagious um but the reason why I highlight this is because for a lot of rocker poool node operators it's been or I guess like you could say all rocker pool node operators the most frustrating thing about the system has been that you needed the RPL token to be used as collateral when spinning up mini pools and I'll be honest like uh it's something that frustrated me as well because whenever the RPL price Falls you become antic collateralized and you have to add more RPL to become collateralized

again uh and you know it just it kind of like um it kind of like catches you off guard I think I think the first time I I figured it out I was like okay wow I didn't expect that to happen and it caught me off guard and I think that's true of a lot of people and it also severely limits the growth of the Rocka poool ecosystem now uh of course this um proposal and a bunch of others are trying to tackle this that rocker poool have have put out the rockpool community have put out here which is great to see and I believe that this will also enable things like staking without the RPL token and the way they're trying to I think uh change the tokenomics of the protocol is that they want to remove that rpr requirement while still preserving the value flow to RPL the

token and from people I've spoken to about this and some of the comments that I've read it seems that the current proposal that wack is talking about in this Twitter thread uh basically addresses that and basically is actually even more bullish for RPL and drives more value to RPL than the current state of the tokenomics of the Rocka pool protocol which is obviously the main goal of this you know you don't want to be taking value away you want to definitely be adding value while still preserving what makes rocker pool awesome which is having a wide diverse and decentralized note operation sets uh so if they can do that I mean that's the Holy Grail right there of staking pool so I'm rooting for them of course you guys know I've been an absolutely massive fan of Rocka pool for a while now all the RPL that I own is held on

sassle eth so you can check that day I'm not planning to sell that anytime soon or anything like that that's just sitting there as part of my odow bond and whatever I needed for mini pools of course uh but yeah I'm I'm bullish on rocker pool and I'm not going to make any comments on the token like as I said I don't like doing that but I'm really bullish on Rocka I'm really bullish on these upgrades that are coming to them they are still the biggest staking pool by far on ethereum right now they still got the most not operators by far and we should definitely be kind of like um we should definitely be supporting them as much as possible because we obviously want to increase the decentralization of the ethereum network and the validator set of ethereum and uh rocker pool is at

the Forefront of doing that all right moving on to a big announcement I guess uh yeah it's not it's technically an announcement but it's more of a kind of proposal from the Unis swap foundation so they've proposed a new governance proposal to turn the fee switch on for uni holders now of course this has been a long time coming this has been something that's been speculated on by people for a very long time now and basically what this means is that it would it would reward uni holders who have staked and delegated their tokens uh with feir revenue from the actual protocol now of course this had a very positive effect on the uni token I believe it went up like 80% in a day or something which is absolutely C

crazy uh but I think that just shows how like offside people were on uni and like the fact that a lot of people were probably shorting it as well was just kind of funny to see that kind of price movement off of something like this and uh I I I think that when you look at kind of uni as maybe the the flag bearer of defi or especially on ethereum and l2s then people look at Uni as like the flag bearer of kind of token value ACR and even though uni has really just been I guess like a quote unquote useless governance token for all of its life up until until if this proposal gets approved right um uh it's still worth a lot like I don't know I think it's fully diluted value after the pump is is worth over like 10 billion but before the pump

it was like five or six billion or something like that so it's still worth a lot right even though it didn't have a fee uh a fee switch on have fee acral to it but now it uh might it might I mean it's not this is just a proposal as I said it hasn't been approved yet but the fact that this has been proposed by the unisoft foundation itself um which is I guess like separate to unisoft labs and the unisoft protocol but I mean separate in name I think like they all work very closely together of course but what I wanted to talk about specifically was not so much this proposal because I do think this proposal will probably get past at this point but what I want to talk about is for the longest time it was believed that Unis swop didn't want

to do this or at least like the cor Unis swop uh kind of people didn't want to do this because of regulatory fears like obviously if you do something like enable a fee switch on uh the UN token and then uh people who hold uni token get uh value basically I guess you could call it a dividend so to speak the wouldn't like this and basically say okay well here there's a profit sharing kind of agreement in place here that means that uni is a security right and they go after unap labs and so on and so forth so there's one or two things that could have happened now first thing is that they've just said screw it we're just going to do it anyway and if this SEC comes after us then so be it right um but the second option is more interesting or the second kind of

possibility is more interesting here second possibility is that the core Unis swap people and the VCS that back them and hold a lot of uni for some reason I don't know why but they feel now feel comfortable with doing this and they feel comfortable enough doing this that the SEC won't Target them and this then opens up the Pandora's box of okay if they feel this way then what does the regulatory environment in the US look like right now like has it actually changed enough for uh tokens or for I guess like teams to enable Fe capture on their tokens because if that is true if it if that regulatory regime has changed in the background and we're just not aware of it yet that is a huge unlock for defi that is a huge unlock for

tokens generally that are built or I guess like defi that's built in the US tokens that are issued out of the us and that means that logically at some point in the near future there us users shouldn't be barred from aird drops anymore we might be able to bring things back like icos right I'm I'm I'm thinking far ahead but that is if the second possibility plays out and the reason why I think that that second possibility isn't something that is a low like kind a low chance of of actually playing out and something that's a relatively High chance of playing out is because of the reasons I've given before around the SEC approving a spot e ETF I really do think that the Democrats in the US are going to try to do everything they can this year to win as many votes as possible

and to cause as little drama as possible within and to make and to make themselves look as good as possible uh to obviously the US people because this election is critical for them right it's critical for them they really do believe it's critical for them they believe it's critical for the country I mean I'm obviously not in the US I don't know the whole politics around it but it's obvious that this is one of the most if not the most consequential elections in US history right uh at least from what I've read about this at least from uh kind of people I've spoken to that live in the US uh that is that is the environment that is the kind of vibe that is the I guess expectation at this point so if they are trying to do whatever they can to keep people on side

to keep people voting Democrat right instead of going over to the Republicans then it stands to reason that they could in fact become more friendly towards crypto in order to win those votes right and by doing this there's a few ways they do this one is they stop going after crypto projects with like those frivolous lawsuits like the SEC has been doing right and I think that the SEC hasn't brought any of those lawsuits for a little while now but I mean they can in the future and if they do in the future then maybe my kind of the goes out the window there or my theory goes out the window there but there's that there's an aspect to to it if they withdraw their lawsuits against coinbase and Kraken maybe not binance as I've just said before binance is a separate issue here but if they withdraw the

lawsuit against Queen Bas and Kraken over the whole Securities uh tra unregistered Securities trading thing that is a huge signal as well basically saying that okay well the SEC has basically given up on trying to have a war on crypto and declare everything as security which means that Elizabeth Warren gave up which means that Biden's Administration generally gave up so that would be a massively positive signal and that would all but guarantee that the E spot ETFs would get approved like as I've said before I think it's very very political so it stands to reason that at least leading up to the election we should see a friendlier regulatory regime even if they don't want to be friendly even if Elizabeth waren absolutely hates crypto even if gendler hates crypto you know that doesn't matter what matters is what they need to

happen in order to get those votes and I think that they know that the crypto industry at now is huge is big enough to win ma massive lawsuits against the SEC to spend the money to win those lawsuits I think at this point they've kind of realized and and now that trafi is involved too like Larry Fink and and who's obviously a massive Democrat supporter and donor I think that they're just really going to not try to piss off the crypto people now even if they hate us even if they hate everything about crypto even if they still think it's about money laundering and and so on and so forth and whatever I think that and also in the face of Elizabeth Warren's about Hamas using crypto right that was debunked everywhere I think in the face of that they've slowly realized and come to terms with the fact that

they need to have crypto kind of money and people on side they obviously want to have Larry thinkink onite and he's really big on crypto right now it's not just about the spot e ETF or the spot BTC ETF he was talking about tokenization like he wants to incorporate crypto into their entire stack there so if we do all of that and we wear our tin foil hat a little bit right I think I'm getting a little bit wah tin foil hat right now but if we kind of consider all that I do think it stands to reason that the hostility towards crypto from the SEC from the Democrats should subside at least for this year if they win the election who knows what's going to happen then do they go like turbo crypto again I don't know right maybe at that point it's too late for them to to to kind of

change their stance there but it really does feel like there has been a shift here whether that it's it's happened in the background and will stay in the background I don't know but I'm sure that there's going to be more positive stuff going forward and as I've iterated before as I've talked about for I'm just going to reiterate my stance here I do believe the spot e ETFs are going to get approved and again that is another huge win for crypto on the regulatory front and I think that this proposal getting passed for UNIS swop is a big win as well especially if it passes in the SEC doesn't go after uh uh Unis swap or defi teams generally I think they already probably spoke to these teams from what I I've read before what I've heard before they already spoke to these teams about this and and they probably think

that wow okay these teams have a lot of money they the backing of really big VCS uh and we've already lost in court a bunch of times and it makes us look really really bad and trfi now want to get involved with crypto I don't know it just seems like something that would be a completely stupid thing to do at this point is being hostile towards crypto especially if you are trying to win uh an election as big as the one that's coming up in in the US I think that uh because of all of that we're going to see some friendlier kind of stuff going forward but anyway that's my tinf hat I'll either be wrong or right maybe after this refuel I'll go on Twitter and see that the SEC has sued enough another kind of project in crypto or something and I'll just go back and try and edit n

we're not going to edit this out of the video I never do that but I just when I think about it I'm just like yeah the dots All Connect here but I don't know if I'm wearing a tinf hat and looking like Charlie Day from it's sunny in Philadelphia that Meme where he's looking at the board and there's all this just kind of stuff that he's connecting together and it means nothing I don't know if you guys have seen the episode basically there's not nothing going on it's just like him being uh crazy but maybe that's me or maybe I'm right on this who knows I think I was one of the uh kind of like only people saying that there was 100% chance that the BTC spot ETFs would get approved um and for a long time as well I I I was constantly saying I'm like there's you

know 100% is going to get improved by gen 10th for this this and this reason and I think I'm one of the only people that are saying it's going to that e spot ETFs are going to get approved by May 23rd and if I'm wrong about that I'll own it of course and I'll say I was wrong about that people can make fun of me whatever blah blah blah I don't care but if I'm going to kind of believe something I'm going to State it publically and I'm going to put my weight behind it so my weight is still behind that but we'll obviously have to wait and see how that plays plays out there anyway we going to get through the rest of this stuff before I go overtime here so um I've talked about inmax before it's a it's a project that I'm

actually an angel investor in I should disclose that of course uh but they're basically focusing a lot of their efforts on plasma now for those of you who don't know plasma was this scaling solution that was really big in like 2018 2019 and it eventually uh became rollups and and um originally optimism was known as plasma group and they were at the Forefront of this but plasma recently has been making a comeback with inmax I think being at the Forefront of developing it so today they've introduced or announced something called plasma next which is the first completion of plasma and the deao resolution of the impossibility of stateless blockchains they continue we have been able to eliminate the online requirement from plasma this can be verified in both the paper and the code now of course you can check out this eth

research post for yourself I'll link it in the YouTube description below um but I mean what's really cool about this is that for a long time people thought plasma was like unworkable it was dead it had no use you know we're just going to do rollups but it turns out that that's not the case and valal actually wrote a post about this recently and I think that once vitalic is putting his way behind something uh and once smart people like um like the inmax team is putting their weight behind something uh I think people should start to pay attention more here because it's not no longer just like a research can we do it thing it's okay we researched that and it turns out we can do it here's how we do it and this is what's described in this um in this uh in this research post

here which you definitely go uh check out so uh and I think it's it's been enabled by zero knowledge proofs I mean dude dude I say dude guys zkps like I actually can't even begin to describe like how a a transformational zero knowledge proofs are to basically everything in this ecosystem and the fact that they've been around for decades and had no practical implication meant that for decades they sat in like University Research land where they weren't getting funded like there was no one getting funded to research this stuff outside of within universities and the funding was obviously not that great there but since we obviously are scaling via Roll-Ups now and since the Advent of ZK rollups zkps or zero knowledge technology generally has gotten billions and billions of dollars worth of funding

now and we have some of the coolest stuff coming out of all of these funding eort efforts including plasma next including a lot of the technology that's being worked on to enable ZK EVMS and ZK rollups and ZK proofs generally there uh but we're basically going through a huge Renaissance uh in in cryptography and you know being led by by zkps and being led by snars and snars and stuff like that that's all enabled by crypto money it's all enabled by the fact that um people want to fund these things because they obviously think they're going to get a return on their investment and this would not have happened if it wasn't for crypto so that to me is is really really bullish overall but um but yeah if you want to learn how plasma next kind of has fixed this kind of uh uh dilemma that plasma had for a long

time I think it's been five six years at this point uh you can go check out this post I'll link it in the YouTube description below for you to do so all right last up here just going to do a little bit of a mini bullish rant so I put a tweet out today where I said EIP 1559 went live on August 5th 2021 which was towards the end of the last bull market the merge and subsequent massive issuance reduction of around 90% for eth happened on September 15th 2022 in the heart of the bare market now eth will be net deflationary for the entire bull market buckle up so the bullish rant Starts Now basically I'm going to try and get through this without rambling too much but the reason why I tweeted this out was because I read someone uh post something in the daily

grade Discord Channel I can't remember who it was who said this will be the first bull market where ethereum has been full proof of stake and then I I thought about that I'm like okay well okay that's obviously true because ethereum didn't come fullprof of stake until the merge but then what else did we have that was not part of the whole bull market well of course e559 okay well what are both of these things together enable well they enable a net deflationary eth while still providing a yield for eth stakers right because we're still issuing new eth we're just offsetting it with the burn so just these two things alone now exist have existed in the bare market and now will exist for an entire bull market and will exist for every bull market going forward like I just can't help but think what that's going to do to the price

guys like I mean I know I've given my target 15K to 20K and these are the reasons that go into that but like the more that I just kind of look at this stuff and the more that I think about it and just reiterate it in my own mind and the more that I kind of break it down and then I think of everything else like reaking and layer 2s increasing the network effect of eth and and institutions and the ETFs and so on and so forth I just get so stupidly bullish I know like today obviously uh e over 3K at current time of recording it's about $3,060 which is obviously a big deal because uh being over 3K is a big deal and it looks like eth wants to keep running to like 4K uh on this run in particular but I think when I just kind

of grow go through all those bullish catalysts that have just not been have not existed in other bull markets we didn't have reaking we didn't have e spot ATF I mean to be fair we don't have them yet but if we get them in May then yeah we'll have them for the bull market right we only had EIP 1559 towards the end of the last bull market because the bull market ended on November 2021 which is only a few months after August of course um and we didn't have the merge done in the bull market that was done on in September of 2022 which really was the heart of the bare Market I mean it was like a couple months before ft blew up and then the and then that was the bottom basically but now we have all of this stuff that we just haven't had

before in a bull market so that is basically I guess the the main reason why I think eth can go to 15K to 20K this cycle and then beyond that over the long long term I believe eth can go much higher than that of course but you just you just take that all together and then the only assumption that you really need to make this is this is the beautiful thing about the ethereum investment thesis at this point the only assumption that you need to make at this point is if ethereum as an ecosystem will keep growing that's it you don't have to assume anything else because let's assume let's say the ethereum ecosystem will keep growing everything else is a downstream effect from there let me spell it out for you and this will be the final part of the bullish ramp because I've gone over time here e the

ethereum ecosystem keeps growing what does that mean well it means the layer toos keep growing more and more people get onboarded more and more people buy eth and use eth right so eth Network effect goes up Okay cool so how does that Downstream to everything else well of course more and more people are going to stake their eth more and more people are going to restake their eth the more of this activity on the Network means that more fees are being burned as part of EIP 1559 right um and that means that we're going to be net deflationary still that is a meme that people kind of talk about and people kind of shill and people kind of uh highlight as a value driver uh so from there we've already got like all these value drivers that are capturing the value of an increased ethereum kind of ecosystem increased

ethereum growth increased ethereum Network effect so as I said all you need to do is assume that ethereum is going to keep growing as an ecosystem and then everything else falls into place because you know for a fact that eth will capture that value I just gave you the value drivers there I mean eth e eth fees and burning eth uses collateral eth staking e reaking spot eth ETF I didn't even mention that right uh you know as I said like the uh the net deflationary nature of all of this like as long as you as long as ethereum keeps growing as an ecosystem eth benefits from that no matter what there's no there's no way to stop this as well like ARP 159 is not getting removed from the network we're not going back to proof of work reaking is not getting removed from the network

if anything it'll get in shrined in the network you know staking is not going away uh e Us's money is not going away e Us's defi collateral is not going away right uh eth once eth gets a spot ETF that's not going away so like as I said all you have to do is ether assume that ethereum ecosystem keeps growing eth captures that value and in turn logically eth should go up over the long term that's my entire investment thesis really in a nutshell because as I said that's the beautiful thing that's the only assumption you need to make there's no assumption around value acel none of that we know exactly how ether crew is value we're seeing it play out right now ether is a massive asset guys like it I know Bitcoin is already obviously really big but e is a massive asset compared to

everything else like exclude Bitcoin for a sec obviously Bitcoin is is much larger than eth right now which I believe the Gap will close over time but right now Bitcoin is much larger than eth exclude BTC from the equation eth is just so much bigger than the rest of the ecosystem and ethereum as an ecosystem generally is so much bigger than everything else that you as a the only assumption you need to make is that the ethereum ecosystem will keep growing and I know I've repeated that like 10 times now but it was something that I've been thinking about a lot lately and I was like wow it how crazy is it that you don't really have to assume anything else you just have to assume that and how crazy is it that that assumption is not a big assumption either because ethereum is still very very small in the

grand scheme of things like within crypto it's it's a big ecosystem outside of crypto it is Tiny it is really really tiny it is just getting integrated into the tradify systems with these ETFs which is just the tip of the iceberg because e ether as an asset is is just one part of the ethereum network the ethereum network is so much more than that so I think it's a really simple assumption to make it is not a big assumption to make it is not something that is risky it's not like oh it's the 1% chance of it happening I think there's like a 100% chance of it of it happening even if you want to put like 99% on it because obviously nothing is ever 100% but you put 99% chance that the ethereum ecosystem is going to keep growing for decades to come uh like I

truly believe that and if you do believe that then it's really easy to buy eth it's really easy to hold eth even through the wild volatility that we see and you do believe that eth is going to one day be a world Reserve currency people will want to hold it as that and that's what I believe uh truly but anyway I know I said I'd be short with the bullish rant but I just realized I'm at 40 minutes that's that's almost 40 minutes that's nice uh the refuels are getting longer guys it must be a bull market right just the final thing here I just wanted to give another shout out that I'm going to be at the upside offices in Melbourne on Thursday uh this Thursday from 5:30 p.m. onwards for their Meetup you can get the full details for this I'll link it in the

YouTube description below but if you are in Melbourne uh and you want to attend a crypto madeup and you know you're someone who doesn't really care for meetups I highly recommend attending this one not just because I'm going but because upside always throws an awesome Meetup there's always a lot of people there A lot of interesting people they have you know pizzas and everything when you when you arrive it's it's a really nice office with like a balcony and everything like and it looks like it's going to be good weather on on Thursday as well definitely come down don't miss this one guys and you can register I'll link it in the YouTube description below for to do so and I hope to see many of you there if you are there and listen to the refuel please let me know I always love uh uh kind of meeting regular

listeners it just it really warms my heart so please let me know there but anyway on that note that's it for today's extra long episode so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone