NFT madness, EIP-1559 week, Rocket Pool testnet live - The Daily Gwei Refuel #177 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily gray refuel where recap the latest news in the ethereum ecosystem i'm your host anthony cesano and today's the 2nd of august 2021 all right everyone we had a big weekend over the weekend a lot of nft mania going on price is going up again 8th just you know steadily going up i mean i think it's on its 13th green daily candle in a row which is quite crazy after i guess like just a few weeks ago where where everyone was like really fearful and the price was just kept going down and everyone was like oh my god the bull market's over we're going to like triple digit eath and just hilarious how quickly this space moves you really can't even plan out a couple weeks in advance of where this space is going to be

so that's been fun to to watch but anyway i'm going to talk about the nft stuff in a bit don't want to harp too much on about price just wanted to give a quick kind of shout out here uh we did the uh ama with daniel from cryptocurrency jobs over the weekend in the daily grade discord channel it was really good a lot of people participated got their questions answered the full transcript of this ama is now available it is linked here which i'll of course link in the youtube description for you guys to check out uh if you are looking for a job or just like curious about what's going on in the crypto job market or you know how to work for adele or anything like kind of kind of like that definitely check out this uh this post this transcript because there's a lot of alpha in there really i

mean daniel was awesome um he answered all the questions very thoroughly and he answered them with really great information so definitely go check that out if you haven't already uh and the second thing i just wanted to give a quick shout out to was the beacon book the auction is ending in 24 or 27 hours from when i'm recording this um uh which is uh tomorrow at oh god i i only know the australian eastern eastern standard time for this but basically it's ending at i think midnight uh tomorrow australian eastern standard time or 1am or something like that so definitely uh go go kind of like buy the book if you haven't yet there's 57 backers so far there's going to be a hundred of these books so you know you can you can scoop one up on the cheap while it's still uh

while it's still available here if you'd like uh but yeah this is basically the beacon book that i've been talking about for quite a while it's the one that has like interviews with 47 ethereum researchers and developer eth2 researchers developers and followers along with their journey and things like that so definitely go check this out if you haven't yet and that's it on the kind of like shout outs part of things i did want to talk about this tweet that i put out today so i was thinking today i'm like okay what what things happen on the ethereum network that obviously need to pay fees and what things intuitively are bearish for for eth that happen on the network but are actually bullish under an eip1559 kind of network now i put out this tweet where i said once eip1559 is implemented every time

someone sells eth via a decentralized exchange it will be bullish for eighth why because every dex trade on layer one has to pay gas fees in eighth and most of these fees will be burned so in turn we invented bullish selling checkmate bears now i don't want to you know kind of unpack this a little bit it's not just layer 1 traits it's going to be layer 2 trades as well because the layer 2 um layer 2 kind of like operators are going to be posting proofs to layer 1 which have to pay ethan gas fees and you know it's gonna get burned like that but for the sake of my tweet i just wanted to keep it simple here but essentially uh this is quite funny when you think about it because it literally like literally every single transaction that happens on the ethereum network

after one five five nine goes live this week is going to burn eight and it doesn't matter what it is and i've said this before on the review where i talked about how no matter if it's a bull or a bear market uh get a fees eth is still going to keep getting burned via fees like we saw during even the quietest periods of the market the average gray price still stayed around 10 or 15 and this was during the the quietest periods of of the market after we came down like 60 off the all-time high or whatever it was um everything was just like sideways as hell there wasn't much happening at all and then uh recently we've spiked back up because of like the nft mania the market's getting hot we're in like the 30 plus gray range now 20 to 30 depending on

i guess the time of day um and you know i expect that to keep going up if we go into like another kind of full-blown uh bull market here but essentially it doesn't matter because whether it's uh you know people buying or selling each fire decentralized exchange or any other token eats getting burned whether someone's getting liquidated eats getting burned minting nfts it's getting burnt doesn't matter what the transaction is either's always being burnt and i think a lot of people miss this actually i think a lot of people don't i don't realize that just because every like things are bearish just because things are quiet it doesn't take away from the impact that 1559 is going to have on the eighth supply um now in saying that it's funny because like i've gone on about one five five nine a lot um obviously on

the on the refuel and on twitter and everywhere for for a long time now but i think the merge is like ten times more bullish than one five five nine for for the eighth price and the the the eighth one eth2 merge is going through hopefully in q1 um so that's still another like maybe eight eight months away or something like that six to six to eight months away or something um and and i think that's more bullish but at the same time that's like a one-time event i guess and i don't think it's going to be pricey or anything i don't think anything's ever priced in when it comes to ethereum but the fact that it's like a one-time event where you know it happens once and then and then that's kind of it it's not going to happen again is very different with one five five nine because one five

five nine is a variable thing where you'll have bullish periods where each is being burned and like a lot more eight is being burned right like say the fees are 50 million dollars a day which we saw during kind of like the mania of the of the bull market um and then you know say they're five million dollars a day so obviously there's gonna be like a 10x difference in the amount of kind of eighth being burned but it still doesn't matter it doesn't matter if it's variable there's always going to be eight being burned uh no matter what it is even if it's only five million dollars a day if it's 50 million dollars a day it doesn't matter whereas with the merge even though i think it's going to be more bullish for for ethan kind of like the short the short term of

like uh i guess like when it happens um i just because of the fact that it's a one-time event i do think five five nine in the long term is is much better for i guess like the price of eighth and much better for um you know its longevity and each value now i i should unpack what i mean by like a one time event basically once the merge happens we have what people have coined as the triple hardening event now i explained this the other day but just for those who didn't catch it there um basically the triple harvening is essentially issuance being reduced by 90 when the merge goes through because we're cutting off all proof of work issuance where um dumping uh uh the miners obviously get you know getting maybe dumping the wrong road but getting rid of the miners so the period of work

issuance goes away uh which is 4.5 percent around about right now and we just have the period of stake issuance which is i think 0.6 or something like that it might be higher once we get to the merge because more people stake eighth you know the higher it goes but still we we could see like between 80 and 90 percent of the instant issuance reduction so but but the thing is as i said that's a one-time event that's not gonna happen again um and and you know i i consider that to be extremely bullish but if we didn't have one five five nine coupled with that i think that it wouldn't you know it wouldn't count for much over the long term because the network would obviously get used to that and then we'd still be issuing ethan that wouldn't be like uh kind of like

any cap supply or anything like that and i don't think even one percent issuance is a big deal i mean i think the market can absorb that i think as an asset has way more demand than uh than that but but with one five five nine this is how we get into like kind of the ultrasound money deflationary aspect where we could potentially be burning more in fees than we're issuing on on the network and that's why uh one five five nine coupled with um proof of stakes issue and schedule is the you know those two things have to happen for you to be uh for this to be like the most bullish thing for ultrasound money to happen um so yeah hopefully that gives a little bit of color there about like kind of how i'm how my mental model is around these sorts of things and kind of like what

i'm betting um is going to happen and kind of like how i view it going forward i think that if you just like are buying ethan just sitting on it like it's going to be fine like that's not investment advice but really like people always ask it's like how can i you know get exposure to all this stuff well it it's actually funny maybe this is a little bit of a tangent i'm going to jump into the nft stuff in a sec but but this relates to like kind of ether as an asset i have a lot of people asking me all the times like how do i get exposure to nfts or how do i get exposure to d5 or how do i get exposures to dows and you can buy the individual project tokens and you may or may not outperform ethan you may or may not do well with them

there's a lot of different factors to consider when you think of that but i think eth as an asset is just a broad index and and gives you broad exposure to everything happening on ethereum and then after 1559 is implemented it's even more pronounced because you have eth actually directly capturing value of all the activity happening on its network on the ethereum network so from that point of view really i mean this as i said it's not advice i'm not telling you go by either right now or anything like that but really the way i view it is that i just buy ether and i'm comfortable that ethel give me exposure to to all this stuff now obviously when it comes to things like nfts you're not just buying the asset for the financial stuff you're buying it um because you like the asset maybe you

like the artwork maybe you you want to collect uh collect things maybe you want these in game items to use or whatever right there's many different aspects to it um and you know maybe with kind of like d5 you maybe have like 10 percent uh d5 tokens as part of your portfolio because you want some diversification you want to play like a riskier bet and hopefully that outperforms ethan if it doesn't it's only 10 of your portfolio so it's not a huge deal um so yeah i mean there's multiple ways to play it but i think that if people just want simple broad exposure to everything happening on ethereum i mean there's no it's a no-brainer when it comes to eighth and it's even more of a no-brainer when 1559 is implemented and on top of that with eth you can do a lot of things

with it i mean you don't have to just buy either and do nothing you can stake that eighth if you want uh you can put that ether into maker draw some dye and go do something with it like that's obviously riskier but you can do that sort of stuff you can put your eighth into various d5 protocols to earn a yield on it uh there's so many things you can do right like um you don't have to just sit on it and do nothing with it which i mean if you do that's fine but i think you're missing out if you're doing that i think i i think that all eights should be staked to be honest even if you're only earning like i mean in the worst case like one two percent yield on that either year i think that's better than just keeping

it in your kind of like wallet but i get that i get there's a bit more risk in having it because if you're staking on your own um you need to basically secure your staking setup you need to make sure you don't get slashed or go offline or things like that and then if you're staying with someone else then you have to make sure they don't get slashed or go offline or you know steal your funds or whatever so obviously like just holding ethan doing nothing with it is fine and it is more than okay um but for me personally like i ate to me is has been made to be a productive asset like that's exactly what it is i use it as a productive asset i stake most of it the rest of it i have in like a make up position where i borrowed some

funds against it and then all that kind of stuff that goes along with it but that's generally how i think about it so hopefully that's given us some more color there i did want to move into uh the thing that i guess like everyone was talking about over the weekend that was nfts now i think most of the attention was placed on crypto punks obviously because of actually i should show you this tweet first from michael tant who basically spotted that uh the person or at least the group that bought those 100 crypto punks uh was three hours capital now for those of you who don't know 3rs capital is a pretty big trading firm within the crypto space uh they are a billion dollar fund essentially trading fund they're very well known um you know suzu the um one of the co-founders is very well

known for his super cycle i think that that's the term that he coined or at least has been using within kind of like crypto twitter for quite a while and then kyle davies is his co-founder as well there but you know they're very bullish i think on on ethan btc and and just crypto in general obviously like their crypto trading fund right and an investment firm they have a platform fund called defiance capital run by arthur xerox and um they do investments in d5 and things like that uh but yeah i mean the reason why i'm giving you background on who they are and what you know what they what they do and how they're a trading firm is because i think this is the first at least big purchase from like a a trading firm of nfts now if you think about it and i was

just extra i was just describing um how you get exposure to nfts well really you can buy the nfts themselves right which is a lot riskier than than anything else um and there are you know there's different degrees of risk here i think that crypto planks would be the least risky thing to buy when it comes to nfts because i think crypto punks have extreme staying power um and i think that they're you know they're going to be around for a very long time they have a community they have culture around them you know you can't really go wrong with a crypto punk over the long term at least whereas a bunch of the other nfts like who knows right i mean there are some out there that that might may you know stay around as long as crypto punks does and things like that

but generally it's kind of like hard to get exposure there so there's either you buy eth which i mean three hours capital already has like a crap ton of eighth i mean they haven't been shy about that um or you can like invest in infrastructure stuff which i'm sure they're already doing through their platform funds or or through you know kind of their own book sort of thing um or you buy the nfts and here they've decided to buy 100 crypto punks and the way that they bought them was actually interesting because they didn't buy them publicly what they did is they basically scooped up all the 100 crypto punks that were for sale uh on on kind of like the lava labs website which you can see and they did this uh through flashbots so they actually paid a minor uh or at least a dow called mining down

here five eth to get this transaction in where they basically sweeped all of these hundred crypto punks and the reason they did this is because they didn't want to risk someone realizing that they were buying these crypto punks one by one to kind of like buy it up and have those people pull their crypto punk for sale and then maybe re-list it at a higher price or something um or you know maybe not relisted at all so they played it very smart by doing this this is essentially so the way it worked is they basically went around the public mempool so no one saw them do this until the transaction was completed they no one saw it in the mempool um so they just basically they did what people uh call uh sweeping the floor so they basically just swept the the floor on these punks and now they own 100 crypto

punks which set off this entire mania and you know now the floor for crypto is at like 32 8 or something like that some like 85 grand went absolutely nuts right um so that's what kind of caught a lot of people's attention but that also had the on flow effect of just nfts in general going crazy over the weekend like the floor prices um which when i say floor price i mean like the cheapest nft from that collection that you can buy that's what the floor price is um across the board pretty much they went up like for things like auto glyphs um things like squigglies uh me bits i mean like pretty much like all the collections they're at least somewhat well-known or at least somewhat known um the floor went up on them and that's i mean that's typical when fomo kicks in and where kind of like a

mania kicks off um now in saying that like there's no telling which of these projects are actually going to sustain themselves over the long term and are going to outperform eth as well i think crypto punks i mean i want crypto punks has a good chance of doing i'm not going to say it's guaranteed to outperform ether the long term but i think it has a very good chance of doing so uh they're extremely scarce like there's only 10 000 of them that ever existed there's way less than that that's available for sale and they have their own unique attributes so i'm talking about the floor here which basically means just like the common punks but there's a lot of punks out there that are extremely unique i mean you've got the hoodie punks you've got the 3d glasses ones you have zombies apes and aliens i mean

the aliens alone i was looking at some old transactions one of the aliens sold for 700 000 in january um and the last alien sale a couple months ago was like 7 million and given the the recent kind of like resurgence in kind of like crypto punks and the amount of people are spending on just the flaws and the other rare punks out there i mean i think it's safe to say that an alien crypto punk would go for many tens of millions of dollars if it was to sail right now i think we could once one day see these kind of like alien group crypto planks going for 100 million plus and when you think about that that's absolutely insane but i i don't think it's like um far-fetched to say this could happen uh given like the fact that they're so incredibly scarce and people

buy punks for different reasons so there's kind of like that aspect to it um but yeah generally like i mean you can even see from the open c volume here devin finza the uh the co-founder and ceo of openc said that in 2020 which is only last year for the whole year openc only did 21 million dollars in total transaction volume and the last two days which is the weekend they did 95 million dollars in just the weekend right um and you know he says here the growth curve for nfts is insane and you know this actually reminded me of something this reminded me of defy summer because up until d5 summer um i've said this before many times on the refill but unit swap was only doing something like 10 million dollars of 24 hour volume in um uh in kind of like

before d5 summer and that was in when when uh i think like the market was heating up and d5 was getting a bit more usage and that was uni swap right that was like the most well-known defy app and still still pretty much is um or at least one of um and then d5 something happened and we had uni swap doing like a billion dollars and 24 hour volume like 100x increase so you're kind of i think seeing the same thing play out here where you're going to have pockets where different kind of like sectors and categories have their own manias for different kind of reasons and there's going to be like boom and bust cycles i'm sure nfts are going to get crazier from here than we um then we can kind of anticipate and know but at the same time a lot of it's going to zero and

a lot of it has no long-term lasting value and actually nfts are distinctly different from something like defy tokens because of the fact that they are unique and you actually have to find a buyer for them so for example if you're holding a d5 token you can find liquidity for that relatively easily even if you've got like something that is considered like a dead project or or something that's not really getting much traction or whatever you can still source some kind of liquidity for it on unisop like even i mean it's amazing that there's actually liquidity for some of these things but there is whereas with nfts you actually have to find a buyer for it i mean there are fractionalization protocols where you can like basically or indexing protocols where you can somewhat kind of like sell it into that or like fractionalize

it and sell little bits of pieces but it's a bit more kind of like complex and it gets messy but if you want to sell the actual nft as a whole i mean you literally have to find a buyer for it there's no dumping it into like open liquidity there's no guarantee that you're gonna find a buyer for it and you can say well i think this is worth like a thousand dollars but if no one else thinks it's worth a thousand dollars or think it's worth anything then you can't sell it there's no open liquidity to sell into so i think that's what makes nfts distinctly different and i think that's why the nft mania is going to hurt a lot more when it comes down because a lot of people are going to get stuck holding these things that are worthless and if you're treating it like an

investment then it's going to hurt you a lot but if you're treating it as if like a collectible thing where even if it if it's not worth much you still have that collectible right you still have the nft which is the positive side to it you still kind of like have that tied to your address or whatever you still own it and you can still show it off if you want to just because it's not worth much doesn't mean that you uh or it's worth nothing doesn't mean that you kind of lose the value that you you draw from it yourself which i think is is distinctly different from d5 tokens because they're fungible and every default token is the same um as you know if every uni token the same as every other uni token for example so um from that perspective i think

there's a there's a few key differences there to keep an eye on but i mean i've been saying it for a long time now nfts are going to be the thing that on board the most amount of people nfcs are not just limited to art collectibles gaming it's such a wide thing like anything that's unique can be tokenized as an nft whether that be like a house deed a contract like a legal contract uh i mean ens names nfts uh they have such broad kind of like appeal and broad use cases that i think nfts are what's gonna on board the masses into ethereum and they're gonna be using d5 without knowing it i mean i went out i spoke about this a bit more on the daily newsletter you can go check that out but it's just going to be amazing to see kind of like this growth happen

and i think we're going to see a lot happen over the next few months but this thing's like a multi-year decade probably play here where nfts are going to transform you know the way kind of like we do all sorts of things just like our d fight does as well so i'm going to keep an eye on that but i'm going to leave that for now we've got a bit more stuff i want to get through today um but yeah i hope that that you kind of like enjoyed the nft mania over the weekend i think it's just a taste of what's to come that's for sure so the l2 beat update uh has uh uh sorry the l2 beat website has updated uh their site or uh or here to include a new risk view so you can basically see um the a quick view of all these

different l2 projects and what kind of i guess like centralization vectors they have now i've discussed you know um in in in detail before how like a lot of these l2s will start off with a um admin key or have like upgradeable contracts um and you know they're not like fully decentralized or anything like that you can see from this list let's just pick out optimism you can see that you know the data availability is on chain but the contracts are upgradable so the contracts can be changed at any time the owner is just the multi-sig which is obviously the optimism team and their affiliates uh and the escape hatch is a merkle proof which means you can still get your funds back because it's a true l2 so you just have to go um you have to supply that miracle proof to the uh

contract on ethereum uh layer one and you'll be able to get your funds out um and then you can kind of look at uh you know some of these other ones that are maybe i guess earlier early on or maybe more centralizing something like uh i mean immutable x like i'm a big fan of what they're doing but their data availability is external um their upgradability is the same it's it's upgradable here the owner is unknown i'm going to assume it's like a it's definitely a multi-sig or something like that and then these k patches the same kind of thing here with a miracle proof but but generally like a lot of these l2s i mean the way that this they're made is that essentially you should be able to get your funds uh back you know if something happens to the l2 if it goes offline you should be able to

retrieve your funds from the smart contract living on ethereum the bridge contract on layer one so that's the kind of like i guess big plus there and then you know you can see here that pretty much all of them have some sort of like trade-off that they've made because they're so early except fuel fuel actually has on-chain data availability uh the upgrade the upgradability is immutable so that they can't actually upgrade the contracts uh the owner is it's unowned it's not owned by anyone um but the escape patch is unknown now i would assume that the escape patch is gonna be the same as the other optimistic rollouts because fuel is an optimistic roll-up with a merkle proof um but yeah you can see the rest of them are just like nowhere close to where fuel is but i think that we'll get there eventually

i mean i've discussed this before uh but yeah we're just gonna have to keep an eye on that but yeah i like this update from from l2btr you can go check it out for yourself on the site oh they say it's the next update here i should say sorry it may not be live by the time this video um you know if by the time you watch this video but you can go check it out if it is so rocket pool has officially launched their prata testnet uh test net over the weekend so you can now uh essentially play around with rockapool for i think one of the first times in like a test net capacity um you can experience decentralized liquid staking with r8 or run a node in the protocol using their smart node stack now for those who don't know rocketpool is it this is a

decentralized staking pool for eth2 staking um they've been in development for quite a while now i mean i kind of feel sorry for the team because they started developing this i think all the way back in 2017 and the eth2 spec and rollout of staking has changed so much over the years that rockable has had to keep up with it and there's been limitations i've had to wait for things to happen but it's really awesome to see that they finally got into testing that here so if you're interested in you know participating in this or running a note or whatever definitely go check this out and i think this is going to be something that really appeals to people that don't have 32 eth because essentially the whole point of this is to have a decentralized staking pool that people can enter because they don't

have the minimum 32 to run their own validator and these days you know 32 eighth is worth whatever it is 80 grand 85 grand or whatever um and most people can't afford that and i totally get that but i don't i'd rather these people use something like rocketpool than uh something like a centralized staking service or an exchange or whatever so we definitely want to keep supporting uh rocketpool and i'm i'm really glad to see that testing that is live you can go check this out i'll link it in the youtube description for you so uh a little bit of a kind of thread here from jake trevinsky on that uh regulation that was stuffed into the us infrastructure bill that i spoke about last week i think on the refuel uh this thread from jake breaks this down amazingly i mean it's the best thread i

saw on the topic so i'll link it for you to go check out but essentially he put this thread out and then a couple days later he put a tweet update out saying that on sunday night he had like an infrabill update here where he said that they've made progress on it but the language is still unacceptable uh next steps is that they're going to advocate for an amendment on the senate floor if that fails they'll take their fight to the house um and you can see kind of like the change here jerry burrito put out a put out a tweet thread there's a there's a kind of slight change here which kind of um i guess it changed from uh any so this is the kind of like i guess uh regulation they wanted to put in place here or at least the language they

kind of used for uh for this regulation this is the original version version and i quote any person who regularly provides any service or application even if non-custodial to facilitate transfers of digital assets including any decentralized exchange or peer-to-peer marketplace now this is basically saying that they wanted to regulate and require uh people to do tax reporting and kind of like kyc aml stuff on things like decentralized exchanges or peer-to-peer marketplaces or whatever um which is insane right you can't really do that because there's no there's no operator for something like uni swap new top labs doesn't own the uni-swap protocol it's it's decentralized on ethereum and trying to do reporting for those sorts of things would just be a nightmare

and the language changed to and i quote any person who is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person so obviously the language here is still kind of like crappy but it's like less crappy than what it was before so there is progress being made so that's what i wanted to point out is that we have people fighting for us and fighting for this kind of stuff to to get amended here and to make sure it doesn't make it into this infrastructure bill which i mean firstly this is insane that these kind of like crypto regulations are being stuffed into an infrastructure bill that i don't know if you saw on twitter today there's a picture of a guy holding a stack of papers that was the bill it's like this big i mean you can see i

might see on my kind of screen here um it was insane there's no way the people voting on this bill are going to read the whole thing and understand the whole thing and be able to debate the whole thing and i just think it's like total it's like this is what happens a lot in in politics and kind of like on these massive bills like an infrastructure bill is that everyone tries to get their what they want into it and they just hope that it's going to go through because infrastructure bills are usually something what they call like a must pass where um basically like they really want to get it done they really want to get it passed and it's something that everyone's going to vote on um and it's like something that's critical because it's infrastructure but crypto related regulations do not belong

in infrastructure bill like it just doesn't make any sense and most of the stuff that they've put in there from what i've seen just doesn't belong in there but this is the way it works unfortunately this is what happens i'm not gonna give my opinions on on the deep political stuff here but if we can get this changed where this doesn't just like um you know be really bad for crypto it's gonna be super positive and i think that we're so lucky to have people like coin center and jake and a bunch of other people at like um i think the blockchain association here to fight for us on and all the other people that i haven't mentioned to fight for us and to make sure this stuff doesn't doesn't get passed into law because as i've said we are entering the geopolitical phase we have into the geopolitical phase

of crypto they're coming they're fighting us uh and then we have to win like i mean you know there's that kind of old adage right you know their first laugh at you um you know then they kind of like fight you then you win sort of thing i think there's another part to that but you get they're just there um first i think at first they ignore you uh and then you know then you win well i mean there's another part to it then you lose if i mean if they fight and win we lose and i've spoken about what we can do to win in different aspects as well like fully decentralizing the stack making sure that we have anon or surah and on teams making sure that we have teams based in friendly jurisdictions all this sort of stuff but the easiest thing to do in the path of least

resistance is to make sure these bad regulations don't go in place in in the first place and that's exactly what people like jake and jerry are doing here and i'm really glad to have them in our corner so again i'll keep you guys updated on all this stuff happening here uh but just wanted to provide uh that little small update for now so uh ben edgington put out his uh regular what's new and eth2 update over the weekend discussing plenty of different things here you can see eip3675 which is the merge eip altair which is the first hard fork things like lido decentralizing the beacon book research i mean it's all here this is the best e3 resource out there eth2.news you can go check it out uh this is how i keep up with eth2 i mentioned that like many times on the ratio before uh but i'm gonna

let you guys go read all this um because it's it's just well worth it there's links to reading about a ton of different kind of things here it's just like super exciting he's even got like resources on ecc and the talks there and like the videos and everything that was kind of discussed there so definitely go check this out if you haven't yet and subscribe to this newsletter from ben because i mean this is going to give you everything you need to start today with eth2 all right finally here i wanted to talk about this tweet that i put out about ethereum l2 solutions um now this was taken from the l2 beat website they had a really great little breakdown on there but essentially this tweet for those of you are listening in i said these are the different ethereum l2 solutions there's zk roll ups which rely

on validity proofs with data on l1 now starkware and zk-sync are the front-runners here and what this means is that the data availability is secured by ethereum l1 and validity proofs is what secures the kind of like l2 and the user funds funds next you have optimistic roll-ups which relies on fraud proofs with uh data on l1 ethereum and this is optimism and arbitrary obviously uh now fraud proofs uh basically i've discussed this before on the reefer we'll just give a quick recap here it essentially means that the this is the reason why there's that seven week kind of like withdrawal delay this is the challenge period where fraud proofs is essentially something that you submit to the chain and say well i think there's fraud going on here and there's like an uh a process that goes back and forth and

then at the end of the process you know the fraud's either approved or disproven and then the kind of like um the thing continues on from there uh and then there's validium which is validity proof same as zk roll ups but with data off chain so i've talked about how you can have data off chain and achieve more scalability here that's something that starkwear has um has been working on i think they invented validium um now so that's definitely something they're working on and then finally you have plasma which is fraud proofs with data kept off chain now this is basically the i guess inferior version of optimistic roll-ups where essentially uh as i said here the data is kept off-chain so it's less secure than something like an optimistic roll-up with data is on chain

um and this is polygon has like a plasma chain that's out there the matic plasma chain i just don't want to clarify there that when i said polygon here i was talking about the plasma chain that they have not the pos chain a lot of people took this the wrong way which is which i get and i knew was gonna happen but i you know i thought i'd clear myself there but anyway i ran into character limits and then my second tweet here i said there are some other solutions as well like volition which is a flavor of valydium from starkware um zk porter which again is a volidium from zksync just by a different name and state channels which is which is another scaling solution uh similar to like the lightning network which is being built by connext um and then you can go view the l2b

website for more detailed information and you know mark clarified it here about how zk syncs zk porter is a validium which will be similar to starkwear's um starkx using different as ek proofs uh starks and snarks the difference here um but however both zk sync and starcraft are both building a volition infrastructure volition is combining of zk roll up and validium so as you can see lots of different flavors technical stuff going on here as i said you can go to the l2b website this link here l2b.com faq to view uh kind of more information about that i mean they have a bunch of information on it's actually really cool they break down a bunch of different things and they're kind of like methodology here and how how it all works and you know there's um there's kind of like more

i like project definitions and stuff on their github which you can kind of view in here about their kind of frameworks i mean this is in code where you can kind of like scroll through and and see it not code like not like formatted not like a normal blog post but you can scroll through and see that here but anyway i think that's it for today i've gone a little bit over time so yes thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone