Layer 2 updates, SuperRare raises $9mil and more - The Daily Gwei Refuel #89 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where i recap the latest news in the ethereum ecosystem i'm your host anthony sosano and today is the 31st of march 2021 all right everyone let's get right into it so i just wanted to kind of share here that there is a scaling ethereum hackathon coming up that's being hosted by eth global it's going to take place online uh all virtual from april 16th to may 14th and i guess another one of the reasons why i'm bringing this up is because i'm actually going to be one of the judges for this uh this hackathon so i am judging alongside a bunch of like really awesome people in the ecosystem as you can see here all right i have people from from all the different kind of scaling solutions on ethereum and more and there yeah you know there you go

there's me but i'm really looking forward to this uh you know for many reasons obviously i'm a huge proponent of ethereum layer 2 and just like scaling in general on ethereum so i'm really looking forward to what people build here and if you are a builder definitely go sign up to this because i think you can basically have such a big impact like i mean you can win a prize here of course but if you build something that's like really cool and looks like it's going to scale an ethereum ethereum in a really nice way you know you could get picked up by um you know by an investor or something that wants to kind of like back your project and you might be able to take it to the next level this happens a lot you know outside of hackathons there's plenty of projects on ethereum that

started as a hackathon project and went on to raise money you know issue a token and basically become like billion dollar protocols essentially so uh yeah i mean but just outside of that i think you know getting all the smartest people together and and kind of hacking on something as important as as scaling for ethereum is pretty cool and i just can't wait to see what everyone comes up with uh you know obviously as i said i'll be judging so um i'm just really excited to see all the projects here everything will be open i think as well like you'll be able to see kind of the projects before the dead judging before the winners are announced and stuff like that uh but yeah really excited for this as i said runs from april 16th to may 14th so it's about a month long kind of

hackathon here and i'm looking forward to what people come up with uh once it's done so i speaking of scaling actually i have a few things here today to talk about with regards to scaling but you know i saw this as i was updating some apps on my iphone just before so coinbase mobile wallet um you know it's not the coinbase app it's their mobile wallet app so it's a separate app um they have had support for optimism's uh of test net for quite a while i think you know actually a very long time probably like 2019 or something like that they've had support for the test net but i noticed today in that their latest version of the wallet they actually introduced beta support for optimism on mainnet so not just the test net but their mainnet as well now obviously we all know optimism has

been delayed or at least their public mainnet has been delayed until july but i think this is just being added as like gearing up to basically be compatible with you know a bunch of different apps that are going to be going live on optimism before that july kind of public main net you know as i've said before i think that uni swap is going to be live in may on optimism uh synthetics is already there as part of their you know their first phase i'm sure there's a bunch of other apps as well and i'm really curious to see if coinbase is going to add a bridge into optimism here um you know maybe maybe they won't do it to july maybe they'll do it before that maybe they'll do it with the uni swap kind of release but just thinking about it it seems like

a no-brainer i mean i've spoken about it before optimism and coinbase uh and you know even uni swap they all share the same kind of investors um you know they're the co-founder of paradigm which is the biggest investor in uni swap and one of the biggest in optimism they uh they are basically i mean he's the co-founder of coinbase right um as well so you know there's deep connections there but outside of that i just think it makes sense for coinbase to support all of these layer twos i'm sure they're gonna add support for other layer twos like um you know eventually like a lot of the stuff that stark was doing um arbitrarium hopefully as well uh you know loopering and stuff like that might come a little bit later but i do expect them to kind of like have bridges in and out here

which would be a huge boon i mean as i've said before centralized exchanges are the port of entry for basically everyone i mean even you know even if we want to put new money into crypto we have to go through a centralized exchange because the fiat on ramps are completely regulated it's there's no real decentralized way to do that and it's very hard to get i guess like buy crypto um without going through a centralized exchange i mean you can go through peer-to-peer exchanges a lot of them still has kyc and things like that um the easiest way to get crypto without i guess going through that is just getting paid in it uh but even that's kind of difficult unless you're working in crypto as well so and there's a paper trail of course as well so yeah i mean we all just enter

through decentralized exchanges and having an i i guess like a solution to withdraw to ethereum mainnet or withdraw to one of these layer two solutions is gonna i think that's what's gonna i get i guess like um get this adoption going on layer 2 very quickly especially from something like coinbase so excited to see how that plays out but really cool to see that they've already added uh kind of the main net optimism too to their mobile wallet here so speaking of layer 2 i put out this tweet today and i actually expanded on it in my um in my newsletter today but basically i said i the layer two ecosystem on ethereum is going to usher in a new age of innovation that's going to be crazier than the last six years combined i can't wait to see what people build when they're unconstrained by the high gap

the high costs and scalability limits of layer one now i guess like the tweet speaks for itself but what i really wanted to focus on was the fact that you know we're going from essentially 15 transactions per second on ethereum layer to thousands if not tens of thousands of transactions per second on layer two and layer two is not only kind of like more scalable cheaper because it's more scalable but it is also offering near instant transactions now obviously we all know or at least most of us would be aware that you know you have to wait 15 seconds or more depending on the fees that you pay to get your transaction in a block on ethereum because block times are on average 15 seconds in ethereum now on layer 2 i mean there are kind of like the concept of blocks and things

like that but it's it's very different you can have near instant transactions on on layer two depending on how it's constructed uh you know even one second kind of like transactions which is obviously like a massive improvement like a one second transaction is a 15x kind of improvement over layer one ethereum and you know not only is it fast but it's also cheap and there's also capacity from for many more transactions i actually think you know if we're just looking at a pure transactions per second kind of metric i think eventually we're going to get to a point where uh i guess there's gonna be like demand for probably hundreds of thousands if not millions of transactions per second and we're gonna have like trillions of transactions per day on these kind of networks so you know from that point of view you know that would never happen on a layer

one uh a a super decentralized layer one like ethereum um but you know on layer two we can be a lot more flexible about this and because of this i think the innovation at layer two is gonna blow us all away i mean there's a lot of things that we we can't even see coming we don't even know what's going to come here but just think about like all the d5 apps on layer 2 and kind of like all the kind of innovation that they can now do without being constrained by these costs sort of things and on top of that think about all the things that have been priced out of ethereum so far like nfts um you know there's a lot of nfts that haven't been priced out i think like the the art pieces and um you know the higher value kind of works haven't been

priced out but if you think about the nft ecosystem and think about i guess like in-game items right like god's unchained cards for example they were priced out a long time ago because a lot of the cards are only worth a few dollars and obviously it costs like 30 plus dollars to trade those things on you know on different markets and stuff like that and move them around so from that point of view it just didn't make economic sense so they got priced out but they're coming out with their immutable x decentralized exchange uh solution soon or basically i mean immutable x is a dex but it's also kind of like a whole nft platform and that's not only going to have gods unchained on there it's going to have a bunch of different nft projects on there there's one called alluvium as well which is going to be on there which is

which is getting a lot of hype right now um so from that point of view nfts are going to have like a renaissance or at least like in-game kind of like collectibles and nfts and stuff are going to have a renaissance on ethereum and that's just gonna bring so much more innovation with it and on top of that i do think a lot of the existing nft stuff will move to layer two as well um you know eventually i do think the layer one fees are just gonna become so high that the only parties that can afford to pay them are the layer 2 um you know transactions posting the roll-up transactions and also um the i guess whales right the ones who can afford a thousand dollar transaction fees because it will probably get that bad at some point and i mean i wouldn't call it bad but i

would say that that's the kind of solution that we're going for and that's fine you know as an end user you already don't want to be on layer 1 because of the gas fees so why would you want to be on layer 1 when the feeds are 10 times higher than they are now right so if you can do everything on layer 2 that you can do on layer 1 with cheaper and faster that's where you're going to go so yeah the innovation there is going to be wild to see i can't wait honestly the next few months we'll be seeing a lot of this stuff uh stuff happen i know i say it a lot but it's coming uh it's already in motion i mean we already have so much stuff live and it's just like being rolled out slowly for safety reasons and things like that but

yeah keen to see kind of like one innovation we see at layer two here so speaking of layer two again dydx has i guess like um upped their maximums on their layer two exchange here so uh for those who don't know doidx's perpetuals exchanges in uh layer two perpetual exchanges in alpha right now um and there was an initial limit of like 150 dollars that you could only deposit um they increased that to one thousand dollars recently and now they've in increased it to ten thousand dollars so another ten times increase there so you can deposit up to ten thousand dollars take 25 uh times leverage out which gives you 250 000 worth of buying power which is pretty cool right i mean as i said some of this stuff is being

rolled out on layer 2 being a very slow way for safety reasons because obviously you don't want people just kind of like putting on millions or tens of millions of dollars onto layer 2 and then kind of like something going wrong for some reason they lose those kind of funds so definitely like that diy dx is taking this approach and as i've said um before they're they're kind of like building on starkwear as well so very very solid foundation here great to see that from from do idx next up on the layer 2 news we have arbitram that posted uh i guess like their inside arbitram bible which is a top to bottom explanation of arbitrary's technical design and rationale i mean their whole documentation kind of section here is insane this is definitely targeted towards developers um and

you know this kind of like inside arbitrary does take a high level approach but most of this stuff is for is for developers so if you're not a dev you may not get a lot of stuff a lot of out of the rest of the stuff here but this kind of inside arbitration post i mean i was reading through it kind of like skipping over the stuff that kind of looked very technical but just like reading through it all i mean it is so detailed like look at this look how much i'm scrolling i'm only halfway through the page if i like go down like this this is just insane right and i've spoken about alba arbitrary a lot before they're basically i would consider them the optimism's main competitor they're using optimistic roll-ups for a generalized l2 solution they they should be going live on

mainnet in april right on on ethereum in april and which means they beat optimism to the punch are they fully evm compatible i'm i'm pretty pumped for arbitrary don't get me wrong um uh but like i just think that documentation is incredibly important as well obviously for developers to kind of know what they're kind of building and kind of get help if they need it from here but as i said this kind of inside arbitrary pcr is definitely you know at least somewhat high level it's not like super super technical so if you if you want to understand how i guess like arbitrarily and optimistic roll ups work in in you know in lots of detail uh i think you you definitely should um you know go go give this a read and check it out so next up on the layer two news is

loopering you know our old favorite loop ring uh they've done a couple of updates to their amm pools so it's now 30 cheaper to add and remove liquidity at the time of writing it is 10 die to add assets this is by far the most accessible place on ethereum for users to put capital to work in amms not whales only and lps now earn a 0.2 percent on on volume here so yeah just a couple of of small but but pretty pretty uh impactful updates here from from lippering on their layer 2 and you know i mean it's cool because like i i know i say a lot that layer 2 is going to like offer these kind of like instant or like near instant like really cheap transactions but we're not just going to stop there we're going to keep improving this we're going to get those costs down

as much as we can and that scalability up as much as we can as well and that's what lubric is kind of doing with their own zk roll up which is really really cool to see here all right that's it for layer two onto some ethereum called protocol stuff so proto lambda is a researcher at the ethereum foundation has been around for quite a while does a lot of work on eth2 specifically uh so he announced today that the rayonism project is now live this is a project with eth1 and eth2 clients to build an ethereum merged test net during the eth global scaling ethereum hackathon and prototype sharding on top of it this is obviously the dream right getting the merge done and doing sharding on top of it uh you know getting the eighth one these two merge done is obviously what we want to see so

really great to see that they've already spun up this project they already have a website for it they already have uh you know specs for it here which you can kind of like jump into if it loads up here i mean they're pretty far along you know if this is going to be their hackathon submission then uh i think i definitely think that they're going to at least win or be one of the finalists here um but don't let that discourage you if you're thinking you're building something i think you know there's there's plenty of room plenty of stuff to do here but this is definitely one of the most critical and important things right i've spoken about it so many times we need the merger done as soon as humanly possible like i'm i'm honestly like very scared that we're going to get hit with i guess like a lot

of um maybe not regulation but a lot of talking points towards proof of work over the next few months that are going to affect ethereum because a lot of people are waking up to it now and doesn't matter what side of the fence you sit on of proof of work versus proof of stake and the energy use or whatever i'm not here to debate that but i do think regardless of of kind of like that there's going to be a lot of kind of scrutiny on proof of work coming and i don't want to theorem caught in the crosshairs there i don't want to theorem caught up in that at all obviously a lot of it's just going to be targeted towards bitcoin but if ethereum can just like instead of you know basically being bitcoin's little brother and just like copying a little bit of it from

you know from you know daddy government or whatever i would love it if ethereum was just like in another house right on proof of stake and then doesn't even have to worry about it sort of thing so uh you know and that's what the merger is so as i said before timeline still looks like you know very optimistically end of year more realistically you know q1 next year but i think you know pretty much everyone in the ethereum kind of like ecosystem right now is in favor of it uh the ethereum core developers are already starting work on it as you can see here and have started work on it from a while ago now so yeah i would expect to see it rather soon but i'm curious to see how this rayonism project uh you know pans out at the scaling ethereum hackathon

so statefulworks put out an update on their beacon book so for those of you who maybe not be aware of what this beacon book is or don't remember i think i've mentioned it once before um it came out a little while ago but basically this is a a book on eth2 which kind of like goes through a bunch of different things um you know with eth2 basically they they basically they collected and edited and formatted contributions from 46 eth2 researchers and implementers uh basically going through their experience uh and like why they were building eth2 you know what their experience was like building eth2 you know what they're going to be doing in the future and stuff like that now there's details on how this book is going to be distributed uh in this kind of post here and because it's

it's it's being published on the uh mirror platform as well um you know there's a lot of uh stuff that goes into this that you can read here i'm not going to read through it all it is a little bit i mean i wouldn't say it's complicated but it's a little bit detailed here but you can kind of like own this book this book token and stuff like that and you can kind of like own um you know essay tokens as well you can see here there's it's based on the essay experiment um as you can see um and there's also going to be a limited edition run of 100 genesis edition books um with uh basically you can make a donation to the project and you'll be able to kind of like secure one of these books i'm hoping i can secure one of them of

course because i think it's gonna be really cool they're doing a bunch of nfts as well i mean as i said there's a lot of detail here that you should read through yourself but i'm really pumped for this book um i'm i'm really excited to see kind of like i guess like a first hand of count of what of what it was like to research and implement and develop eth2 from the people who did it themselves i mean i followed along as a as mostly a third party observer of a lot of what went on i followed it really closely but you know i wasn't in the trenches talking to the teams every day i wasn't like going on retreats with them it wasn't like part of the core teams so being able to kind of get the inside story of how it all happened over the

years is is pretty is pretty kind of like exciting for me so i don't know about you but i'm really excited to kind of read the full thing here so definitely go check this out if you haven't already so i missed this a couple of days ago but andre posted this new kind of uh i guess tool that uh has been built and i don't think the urnic or system built it i think it's a a an outside community here but it's called coordinate dot com and basically what it is it's a social graph based contributor rewards system so contributors can allocate points to other contributors which builds up a country contribution graph and then at the end of each epic allocation points equals budget paid out so essentially i mean i'm not going to connect my wallet here but basically what it is is it's a way for people to

signal who is contributing the most to an organization or to a dow on ethereum so you know say take the young ecosystem for example as andre says here yearn has a 20 000 monthly contributor budget and it's basically using the wisdom of the crowd to allocate that to contributors based on how much work they've been doing so as you can see here in the screenshots there's a bunch of core your own contributors you know obviously banteg is is probably the most well known outside of andre and then you have like a bunch of others here like um you know klim and doggie and and things like that so if you're part of i guess like the urine ecosystem and you pay attention to the urine forum and the governance and everything like that then you would know you know kind of like i guess who deserves to be paid

what for their contributions for that month or something like that and then you can allocate your points towards this so i think this is really cool i think maybe i mean it reminds me of kind of like bitcoin grants where you could kind of i guess like donate to a grant and then they'll be matching to kind of match that and then you know could dr it'll quadratically match it and the more people that give more kind of small donations to projects the more kind of matching that project gets so it's similar in a way where it works on kind of like i guess wisdom of the crowds here there are drawbacks to that of course but i think if if you're someone who is actually paying attention to the to the urine farm the own ecosystem in general or any ecosystem in general then you are definitely they're probably

the most well versed or kind of like most educated on where these points should be allocated so i'm curious to see how this kind of thing plays out there are other experiments like this that have played out before as a wiki mentions here um it reminds him a lot of source cred which is another very similar thing um and yeah i just i mean as awoke says here as well the the the name coordinate is pretty cool too if you've noticed the play on words there but yeah interesting tools here i'm always for kind of like experimenting more with kind of these i guess like open organization tools because a lot of the d5 ecosystem is moving towards this and a lot of it is actually moving towards just being anonymous too i mean i'm sure banteg is not anonymous to you know probably the core contributors here

and a lot of people within the yeon ecosystem or people could probably find him in some way but i haven't tried looking for him and i have no idea who he is so i don't even know if he's a hey it could be a she for all i know but i think you know this kind of like pattern of pseudonymous team members and founders and stuff like that is really cool and and and you know i think that we we need better tools to kind of organize these these kind of like dows and stuff like that and this is just one of those tools in that in that kind of tool kit so super rare announced that they've raised a nine million dollar series a so for those who don't know super air is basically a uh and you know an on-chain art house for uh artwork or nft artwork on

ethereum so they raised nine million dollars i guess led by velvet c ventures and one confirmation i actually hadn't heard of velvet c ventures before this but one confirmation has been around for a while they're crypto native here and there's a bunch of angels on board as well of course um you know notable names here being ashton kutcha which was a funny one to see there uh of course mark cuban right um naval rover and chamath uh i don't know how to say soon i'm never gonna try uh but he's basically you know pretty famous on twitter a lot of you will know who that is um but yeah i mean congrats to super rare on the rays here and it's really cool to see them kind of getting you know this much funding uh i guess for for some runway you know this is probably given runway

for a little while here i i would assume that a token is coming soon i don't know but like i mean as i said before i just assume that every project is going to have a token these days but what i do want to talk about is i just i don't know how i feel about people like this getting into these kind of like rounds right like what has ashton kutcher really done within the ethereum ecosystem right or like in the crypto ecosystem i haven't seen him do much you know mark cuban i think is fine because he's actually doing a lot for the ecosystem but like you know charmath as well i mean he's briefly spoken about things you know he kind of made fun of d5 if you've seen that famous video i mean when he says he didn't even know what d5 was you know nfts is even more

and probably not not now but it was more niche than d5 at the time so i don't know i i don't really feel i mean i know that these people get into it because their network is huge so maybe they're you know i don't know what they do behind the scenes maybe they are actually adding a lot of value but i do hope super rare kind of i guess like airdrop if they do do a token i do hope they airdrop that token to their you know early contributors and kind of weighed it towards the early contributors like what uni swap did um because i think that's a good way to reward your community with it you know without having to kind of i guess like put a thousand people on your on your kind of like cap sheet when you do a raise um and yeah i mean

you know i guess like maybe i'm being a little bit hypocritical here i'm definitely part of um you know certain seed raisers where i'm basically an angel in them um and maybe you know maybe i'm not the best person to be an angel in them but they you know i i definitely want to support the projects and things like that but uh you know from someone who i guess like as i said you know i guess contributes or at least partakes in some of these races um as us you know as an angel investor a lot of the time you know you may not cut them like a big check or whatever because the funds cover most of that but it's more about getting you on board for your network and like your alignment and kind of like you know tapping into to your kind of

skills so what i help a lot of teams with is like marketing community stuff and you know obviously i have a big network so i try to try to get you know uh try to help with like recruiting and things like that um you know you know i personally don't like to be a passive investor but you know for people like ashton kuchar and like chamath and naval i mean they are doing so much other things outside of crypto i just don't know if they're actually the kind of people who would um you know i guess sit down with these teams one-on-one you know regularly and kind of tell them how to do different things and and kind of like help them with different things maybe that maybe they do maybe they will do something big maybe their connections matter a lot more because it's more about kind

of like quality than quantity maybe the one connection that someone like charmath can make for for this team is worth more than like 100 hours of of marketing advisory or something like that right because of his network so if you think about it like that it makes some sense but yeah just a little bit of a a rant there i guess on on that sort of stuff but i i do think super rare uh is a is a great project great team uh you know they definitely understand this space deeply so i would expect them to take care of their early users on the platform if they do a token and you know if they do an airdrop so yeah i'm curious to see what happens here but again congrats to the team here on this it's a pretty pretty great race so in other nft news we had palm nft

announced themselves uh yesterday now this is being built by i think consensus and a bunch of other kind of groups here uh basically they're uh they're teaming up with for their first drop with uh hurst damian hurst which is a british artist and obviously i didn't really have any idea who this was but you can see in his bio that he's a british artist here now um this isn't built on ethereum uh even though they say built efficiently with ethereum it is built on a proof of authority side chain so it you know it's essentially a different blockchain now that is okay i guess but i don't know if you should say it's built on ethereum they're partnering with a lot of different ethereum kind of like projects of course like consensus and infuria

uh and stuff like that but you know they aren't just they aren't kind of building this on ethereum layer one uh because of the fact that you know the high gas costs and all that and all that sort of stuff and they're also going for the energy efficient kind of um thing as well but i think i hope that they move to layer two right i really i mean the project looks cool but i really don't like the fact that they're just on a side chain because essentially that's just them on a different blockchain and this is not me saying that you know different blockchain shouldn't exist but we don't need a million blockchains right we don't need another poa network for those of you who don't know what poa is it's basically proof of authority which means there is a permission set of validators

like a very small set of commission validators maybe there's like 10 that validate the network they're all known they're all publicly kind of like verified but you can't become a validator yourself it's not a permissionless system and these because these people are known and verified they can be compelled by you know nation states and governments to do certain things to censor transactions to take down the network you know whatever so it is definitely not you know decentralized i wouldn't call it decentralized at all to be honest um so from that point of view i hope that palm migrates to layer 2 on ethereum as i was talking about before mutable x is the perfect solution here i think for them but obviously that's not live yet i'm curious to know if they even spoke to the immutable team about this maybe they didn't maybe the immutable team will

contact them because i think this project was in stealth i hadn't heard of it until kind of yesterday so yeah we'll see what happens there but i think this is interesting another nft kind of solution going live here i mean there's plenty of them now and i think we all know you know the nft ecosystem seems to be bigger than the d5 ecosystem at this point i do think eventually by sheer volume you know uh the the default ecosystem will completely dwarf nfts you know right now it's it's pretty big compared to nfts but you know the the the collectible market the art market i mean this is a hundred billion dollar plus market here i think but but i think like d5 and finance is like trillions quadrillions in in market kind of um activity so there's kind of no comparison there but you know we'll see what happens here

um but yeah cool to say this i guess like there'll be further updates coming out so if you want to kind of sign up for updates you can on the website that'll be linked in the youtube description for you to go check out so perpetual protocol a uh decentralized i guess perpetual a decentralized perpetual exchange uh uh on x die so they're also on a side chain here but um they're they're definitely kind of like i guess like very ethereum aligned and i think they're looking into ethereum layer two solutions here um but yeah i mean i i thought i'd kind of bring them up because they're a really cool project i've kind of like spoken to the team before jumped on a call with them kind of like saw what they were doing and they really care about kind of growing this kind of ecosystem here

you know of i guess like decentralized perpetual trading uh diy dx is obviously uh i guess like a pretty big name and then there's perpetual protocol and then there's a couple of others that i forget in the names of right now um but basically what they released was their perpetual staking so you can stake your perp tokens that you've been kind of like holding and i guess like uh earn some fees for doing so now this is you know a lot of her jokes already do this like sushi swap has been doing this for a while abe's been doing this for a while uh snx does this right where you can just basically stake your your i guess governance tokens and earn fees so now i guess they're more than a government governance token right they're they're a fee capture token too um i think initially yeah trading fees

will not be shared with stakers um and 100 of fees will be going to the insurance fund but i think over time they're going to be putting toward putting the fees towards stake is here uh but there's also a rewards pool so i guess like liquidity mining rewards for staking your perp as well which is pretty cool um so yeah i guess like if you have perp tokens definitely go check this out and stake your tokens if um you're not doing anything else with them i think that makes a lot of sense and if you haven't checked out perpetual protocol definitely do so um as i said it's on x-star right now which has a pretty good bridge into ethereum you know in in and out and stuff like that and you know i'm curious to see if a petrol protocol is going gonna go to a layer

two once it's ready or if they're working with maybe stockwear or something like that like what do i dx is doing um but yeah definitely go check this out if you're a perpetual i guess like uh trader so the last thing to talk about here was an interesting tweet from hazu today when he said let's make one thing clear you defend against malicious protocol changes by having a culture of users validating the blockchain not by having proof of work or proof of stake uh in the second tweet he says it's absolutely correct that most people stake chains today don't have this culture their users don't validate but this is a cultural thing not a tech thing and then in his last tweet he says most other proof-of-work chains don't have this culture either by the way in case you weren't convinced before now let's unpack this tweet a little bit

here so i want to unpack the second tweet where he says that most proof of stake chains today don't have this culture well i mean i know house is aware of this but this is referring to pretty much like every proof of stake chain except ethereum uh i think pretty much all of them are a form of distributed proof of stake or d-pods as i've spoken about before on the refuel where depos is basically just a cartel it is not something that everyone can get involved in it's usually run on super nodes which means that you can't kind of like run i guess like a node yourself you can't validate the blockchain yourself you have to delegate your tokens to someone that's been kind of elected or voted in so to me it's just not a decentralized system so i guess i just want to clarify that

point but let's take azer's original original tweet and apply it to proof of work bitcoin and proof of stake ethereum fundamentally it doesn't matter if there's proof of work or proof of mistake um for defending against malicious protocol changes what matters is the social layer which is sometimes referred to as layer 0. so you obviously have layer 0 being the social layer layer 1 being the protocol and layer 2 being you know the scalability on top of that so if you think about it at the end of the day all this stuff is controlled by humans if enough humans agreed to change the protocol rules the protocol rules would change and this goes for every rule this goes for the 21 million cap in bitcoin this goes for bitcoin using proof of work if become

if enough users wanted them to switch to proof of stake they would this goes for basically every single protocol defined uh mechanism uh it doesn't matter what if what it what you use it doesn't matter like what fancy tech you use doesn't matter kind of what consensus mechanism you use at the end of the day it is all humans and i think that's a point that needs to be stressed you know again and again and again because there are so many people that think that you know i get confused that oh it's you know peop it's it's full nodes that kind of like validate the network and secure it against attack i'm like yes okay full nodes do play a part because you can validate the chain and you can know that it's playing by the rules and you can detect things but at the end of

the day if enough full nodes said or enough people upgraded their full node and enough miners upgrade or enough stake is upgraded and basically if enough of the ecosystem upgraded uh to a protocol change right and typically more than 51 then the network would upgrade and your full node would be on a fork now it wouldn't be on the kind of like you know bitcoin or the ethereum it would be on a fork of that and that is the social layer in action that is not the the technology layer it doesn't matter that it was proof of work or proof of mistake that didn't defend against this change it didn't prevent this change what what what would prevent this change is is social coordination so for example in the ethereum ecosystem a lot of you will remember prog power and the whole debate around that

now if enough people in the ecosystem were to upgrade or you know all of their kind of nodes and all of the infrastructure and and miners are upgrading all that sort of stuff to proc power then we would fall to prog power right it doesn't matter kind of i guess like what the minority said the majority wanted to fork so we right uh so we changed it to prog power but what happened is the social layer of ethereum and it kind of never got to that point the social layer of ethereum basically outright you know most people outright rejected prog power and we never they never went in and it was rejected for various reasons but my point is is that it was the social layer that kind of made it happen same with one five five nine right if most people didn't want it to to go

in then it wouldn't have gone in so if you think about like malicious protocol changes and kind of like resisting them i i mean if i was to use an actual malicious change uh or maybe not an actual malicious change but something that i consider to be not a great change you have uh the aip 999 now a lot of you may not be aware of what this is this was the eip to basically unstuck the funds that were that are kind of stuck in the parity multiseek wallet now way back in like i think late 2017 the parody multisig was kind of like i guess corrupted where no one can withdraw the eth from that multisig and there's like a lot of eth in there over 300 000 ethan there most of it belonged to parity uh and like the web 3 foundation because it was

from the the polka dot ico um but yeah on on kind of that note there that was rejected outright by the social layer right and i think you could consider that a malicious protocol change even if the intent wasn't to be malicious because that would basically say okay well you know this is like a slippery slope if we rescue your funds like if we rescue these funds in the parity well then we have to rescue all the lost funds in ethereum and like how do we kind of like arbitrate that how do we say okay well these were really lost funds you know and then it just it just breaks a lot of precedence and a lot of social contracts so that's another kind of thing that didn't go in so yeah i mean i'm going a little bit over time here but i just

did want to stress that when you see people saying you know bitcoin is better because it's better than you know proof of stake systems because there's proof of work and it's more resistant to attack that's that's just at the end of the day it is all social layer it is all social contract it is all humans and always will be you know maybe far into the distant future there's like sentient ai that controls us or whatever but like that's like sci-fi for now what the way it exists now in the foreseeable future is it is all humans running uh their nodes kind of like i guess participating in the governance process at the end of the day even with on-chain governance processes where you have token holding it is still humans right it is not a machine saying okay well i'm gonna put towards these

tokens uh towards this proposal and that's gonna happen no it's a human saying well i think this proposal should go through so i'm gonna vote for that with my with my tokens essentially so yeah at the end of the day all humans always remember that whenever you see people kind of arguing about this on twitter i would highly suggest ignoring them if they're saying that it's proof of work that actually you know is better at resisting foolish's protocol changes than proof of stake i just i wouldn't even entertain those kind of people but definitely i mean if you're not yet follow hazu he's one of the best followers in the space i think uh very good at kind of like thinking through these things that other people don't not afraid to rock the boat as well so he puts out some controversial stuff sometimes i guess that's pretty um you know i mean

i wouldn't say it's easy to do but it's easier to do when you're synonymous and you don't really have an identity attached to yourself which i do really like about the pseudonymous accounts on on twitter they can just say things without kind of like fear of backlash or canceling and stuff like that so yeah definitely go give go give him a follow if you haven't yet all right that's it for today everyone thank you again for listening and watching be sure to subscribe to the channel if you haven't yet give the video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone