Plasma returns, OKX layer 2 with Polygon and more - The Daily Gwei Refuel #689 - Ethereum Updates

Transcript

hello everyone welcome to another episode of the delway refuel where cup latest news in ethereum ecosystem I'm your host Anthony s the 15th of November 2023 all right everyone let's get into it so apologies for missing the last couple of days everyone I have been sick you can probably hear it in my voice to be honest I'm still not totally better but I figured it had been way too long since a refuel 4 days obviously because of the weekend and then the last two days Monday being Monday and Tuesday and there is a lot to get through a lot has been happening especially with Dev connect currently on and the side events and all that sorts of stuff there you know vitalics brought back plasma apparently you know so much stuff to get through basically um but I will say that just a reminder here that next week on

Wednesday Thursday and Friday there will also be no refills because I will be at the crypto assembly event in Sydney now I did I I guess mentioned this a couple of weeks ago but just wanted to remind you guys that yeah Wednesday Thursday Friday next week there will be no refills and I'll be back the following Monday in order to uh produce a longer episode to cover all the all the news from there but I'm definitely very much looking forward to going to the event I always love the inperson and events hope to see uh some of you there if you're going to be attending it as I said it's called crypto assembly you can just Google that and it should come up with the with the right result there um but yeah I believe the the actual events on the Thursday and Friday uh I'm just

going on the Wednesday obviously to fly up fly up there and uh get checked in and all that sorts of stuff there and I'm also on a at a different event on the Wednesday actually on a panel with medy from Sigma Prime uh at 4 p.m. so yeah but that's that's a different event to the to the crypto assembly one there but anyway now on that uh let's jump into the news now of course we have the uh some news around the ETFs now I covered this last week how Black Rock obviously filed for a spot eth ETF and it was funny over I think it was yesterday or the day before there was a fake filing made for an xrp e ETF in Black Rock's name um and as I said like it ended up being fake and it was just crazy cuz I went on Twitter and I I woke

up to this I woke up to the news and then uh uh to to the news of it happening and then the news of it obviously being fake and reading through all the tweets uh you know kind of like the past tense was was quite funny especially seeing all like the xrp army people just getting in there and basically uh saying you know how do you know it's fake this is the exact same way that the e one was filed blah blah blah to like all the um ETF analysts that I usually talk about on here and it was funny seeing the ETF analysts get their exposure to the uh resident Cult of crypto which is the xrp Army right um but regardless of that yeah that was fake but obviously the spot e ETF uh filing from Black Rock was very real and we had a few tweets here so scottt

Johnson who has been tweeting a fair bit about the ETFs lately tweeted something about the uh the analysis here for the the filing and then Jake shinsky quote tweeted this and said I took Scott's advice and read black Rock's argument for approval of a spot eth ETF it's very compelling the argument flows from grayscale's DC circuit Victory the SEC can't lawfully approve eth Futures ETF but not a spot e ETF and obviously Jake agrees with this and I remember saying to you guys that the Futures ETF basically paved the way for E getting a spot ETF because especially in the face of the grayscale kind of um lawsuit win in in court there because as Jake says here basically means that the SEC would be breaking the law or breaking kind of

precedent that was set in a court if they were to approve uh the E Futures ETFs but not the spot ETFs so yeah I feel like the spot eth ETFs are coming you know shortly after the BTC ones I don't know when the BTC ones are actually going to be approved like I remember I speculated last week that it could happen like this week or the week after but as I've said before like the deadline is January 10th really and the ETF analyst I follow still think it's a pretty much not 100% chance but they say like 90% chance it's approved by then but you have other things in between then obviously like the holiday period and potential government shut down on like the 18th of this month or something like that so A few days away now lots of moving Parts here but regardless the

ETFs are still coming guys like I don't think any of them are going to get denied here I don't even think the eth ones are going to get denied at this point in time but there is a long comment period on the eth ones that only started I think a few weeks ago or a couple months ago with the other spot uh eth ETF filings that were that were put forward but I think that the comment period is up to 240 days or something it's it's quite a lengthy comment period so we're not going to be seeing any kind of movement on the eth ones at least until probably I'm going to have to say q1 at the earliest next year right but yeah that's the kind of latest here on the ATF stuff it's pretty much a I guess guarantee that the eighth ones would be

approved given that the futures have been approved but timelines is very rough right now it's not it's not easy to pinpoint a timeline like it is for the Bitcoin ones because obviously we have the the dates there and the deadlines are fast approaching uh but yeah I'll keep you guys updated on all of that as uh things progress there all right so on to some eth related news so uh well I guess like eth development related news so I came across this tweet thread today from Lemonade on Twitter where they've created something called the EIC or eth investors Club Club a quarterly report now from my reading here this report basically aims to essentially cover all of the most exciting stuff happening in the ethereum ecosystem each quarter and

put numbers uh at it basically so it features uh things like you know uh triple harving ultrasound money triple point asset all those sorts of things but it also features not just things about e the asset but obviously things within ethereum like the layer 2 ecosystem dii nfts all that good stuff there I think the audience of this report is definitely um there's definitely the people that are not really as plugged into to crypto as we are like it probably I'll be honest probably the audience for this report is not the is not the refill Watchers and listeners because you guys get this information like straight away straight from basically the source here um but in terms of getting the information out there into new audiences I like seeing reports like this you know there's I don't think it's I think it's still

coming soon here I don't think there is a report yet you can go follow the Twitter account and everything but essentially from my read on here what this aims to be is basically a way to you know if someone you know is interested in eth or ethereum and you know you want to explain to them exactly what the investment case is why you're so excited about it what's going on in the ecosystem you know what's happening with scalability because that's obviously going to be a a topic of conversation a lot of the time when talking about just blockchains generally then I imagine this report would be something that you'd be able to to send to them there and the reason I bring up this one in particular is because uh lemonade here I know from way back they were actually part of the early index

Co-op uh group when I launched that with set protocol back in the day and they've been around for quite a while now uh and I I do trust this is going to be something really exciting so I'll keep you guys updated on on what this looks like um I'm going to assume it's going to be a paid thing as well uh I I don't think this is going to be free especially because the amount of work that's going to go into this is probably going to be a lot of of work and and obviously they want to get paid for their work here which is totally fine but we'll see what happens there maybe I'll reach out and see if we can get any discounts for delu uh kind of members and things like that but we'll see I mean as I said there's not that much

information out right now but just figur it was worth highlighting and you can go follow the actual Twitter account here which I'll link in the YouTube description below for you to do so all right I came across this Twitter thread today from chainbound where they've launched a new grafana dashboard that tracks the uh full nodes of the ethereum network now keep in mind this dashboard is not open source so I'm not sure exactly how they're actually getting uh the you know the the the map coverage here because as you can see on my screen there's a map of basically the the world here and where all the full nodes are located I'm sure they're using the same techniques that everyone else uses like crawling the network just looking for publicly accessible uh and and seeable no viewable nodes stuff like

that but they've gone the extra mile in terms of like mapping this stuff out globally but also um it's accurate to within 11 km I think they're saying uh as well here and they also track active nodes versus total node scene so as you can see here currently they see uh 10,900 active nodes whereas the total nodes that they've seen over time is 23,400 now total node scene I mean there is a number of different reasons why this number you know these numbers are different here but I think that obviously the most relevant number is active nodes so 10,900 active ethereum full nodes not necessarily with validators attached to them so anyone can run a full node for free and you don't have to attach validators to them but as you can see on the map here it is

heavily concentrated in the places you think it is right like in the United States and Europe very heavy concentration especially in Western Europe here and actually pretty heavy concentration more towards the kind of like um Eastern side of of the US but you know still good representation all over and then you can go over here and see where it's actually not we don't have much representation we have a bit in South America in Africa there's basically not much at all uh to be honest right you can actually see here that there's some here and there but not really same with the Middle East not too much happening there I mean there's a presence in Turkey I guess that makes sense uh and and also in Israel Tel Aviv is actually a crypto Hub um there's a lot of teams out of there like starware for example uh and then we can just keep

going over the map and you can see just like the spareness of it uh over as I said like the Middle East and stuff like that China there's a bit happening Taiwan uh actually there's a there's a fair bit happening in South Korea which is nice to see as well Japan and then going to my home country here in Australia we're we're not really batting above our average yeah there's uh there's some few and far between but yeah it's obviously heavily concentrated within the US and Europe right now which I think is is okay because obviously the US and Europe are huge you know the US is uh 400 million plus people right and it's it's as big as Australia is land mass wise Europe is not just kind of one monolithic entity there's many different countries within Europe and many different jurisdictions obviously very

concentrated in Western Europe here but you can kind of see that it maps with who I guess like you see within the ecosystem right like if I was to go on crypto Twitter it would map exactly with like the prevalence on crypto Twitter of of where people come from basically so so yeah but anyway just cool to get a new tool that tracks these sorts of stuff and to see what it looks like globally um and yeah I mean having over 10,000 noes is great hopefully we can see the number trick up trickle up over time because at the end of the day it doesn't cost much to run an ethereum full node and it can be run on very low powerered hardware and you're doing your kind of um bit to keep the network decentralized you know check the chain yourself be able to use your own full

node as an RPC to become a fully self- Sovereign ethereum citizen all the good stuff there uh but yeah I'll link this website in the YouTube description below for you to check out for yourself all right some fresh research about ethereum's uh I guess like censorship resistance generally or I guess like this post in particular looks at the costs of censorship uh and models and simulates uh an approach to inclusion list now I have discussed inclusion list before it's one of the uh research kind of pieces and designs to basically eradicate as much censorship on the ethereum network as possible but what this research does mainly is focus on the cost so the actual direct costs of censoring and as you can see here from this chart you can see that it

actually costs I believe uh a 30% there's a 30% loss to builders who don't include uh sens sensored transactions in their blocks here so like oh sorry don't include like transactions for like torado cash and stuff like that in their blocks here so being an honest uh non- censoring validator or block Builder is always more profitable than being censoring now I think that that is obviously obvious like I don't think that's something that um is Up For Debate so to speak but we do have hard kind of evidence to point to this now but the whole point of inclusion list is basically forcing uh the validators uh or forcing the builders to include these things now obviously when uh you know you can't solve stuff with economics which it doesn't seem that we've been

able to solve this with economics because even though it is more profitable to include those transactions we still have plenty of uh of the ecosystem not including them so you have to solve it with uh with kind of like Network design which is what we're trying to do with inclusion lists and other network designs out there but you can go check out all of these things for yourself I'll link it in the YouTube description below but I just thought it was a great analysis kind of showing what it looks like and how really I mean the censorship on the network is generally concentrated within just the tornado cach stuff right now but let's just say I've brought up this example before you know ofac was to to sanction something else that was uh that was more profitable maybe that was they were to sanction some some decks out there Maybe

not unisoft maybe a smaller decentralized exchange that would definitely uh hurt the profitability of of Builders of block builders and and validators that we're choosing to censor so it really becomes a game of you know how much profit do you want to leave on the table uh from the economic incentive perspective but then with inclusion lists and with the designs that I've seen we stop this in the in its tracks and basically give the power back to the validators because uh because of the way that it's designed but then we still have the problem of validators being able to to potentially censor and that's where other Solutions come in like the shutter rized Beacon chain which is basically doing encrypted mols which ESS what that would mean is that you wouldn't be able to see what the contents of the transaction were uh until it was actually included in a

block so you wouldn't be able to see it while it was in the men pool till it was actually included in a block or or you know included in a bundle that gets included in a block which would basically eliminate censorship altogether because if you can't see what's going in you can't censor it at least that's my understanding of it but it may end up being different we may never end up implementing that it just depends right there's multiple different things being worked on so we'll have to see how that all kind of shakes out there but you can check out this new research I'll link it in the YouTube description below and there was another bit of research here as well from Mike neuter and friends talking all about me burn and clearing up some of the uh misconceptions that have to do with me

burn because me burn has been something that's been in the works for a while now as I said uh it's not really close to network inclusion yet maybe 2025 if it gets accepted by the community but there has been push back on it for various different reasons but you should definitely go give this post a read Because IT addresses a lot of that push back IT addresses a lot of the push back around it not being necessary or misconceptions around what the actual goal of it is so on and so forth and there's a bunch of discussions that I had in the um in the the post itself as well which are really really really interesting so you should definitely go check it out if you haven't yet I'll link it in the YouTube description below for you to do so all right Igan layer announced

another partnership over the weekend so they are partnering up with Neo protocol which is funny because I I announced uh sorry I mentioned last week that polygon was teaming up with Neo protocol which is another obviously layer one um but now they're teaming up with with IG layer to basically uh I believe what they want to do is uh create a bridge between ion layer um and um and near here in order to offer kind of like cross communication between the different l2s and and use near as like a data availability layer and stuff like that we'll see how that kind of shakes out there what that actually looks like because as I said before to you guys data availability is a commodity at this point it is so commoditized right now like I'll just rattle off off the top of

my head you have Nea now jumping into the ring with data availability you have Avil you have Celestia you have Igan da you have uh ZK Porter uh you have ethereum da as it exists today then you have ethereum 4844 then you have etherum full dank sharding right and then I'm already up to six or seven Solutions here it's already become a commodity because when you have that many solutions what do you think happens to the costs right it's basically a race to zero the costs you can't charge that much because then the data can just be posted somewhere else so okay well then what why would a validium for example choose to store their data on you is it because you're cheapest or is it because you're the most secure or is it because

you've given them some nice incentive to do it and then it just falls back to basically how these teams do business development how and what other kind of incentives they put on top and how secure their thing is but I have argued before that obviously the gold standard of data availability is ethereum layer one uh you know post 4844 and post full dansh Shing of course but it's more costly obviously um but then beyond that I would say that it's not live yet for the public but Igan da would be probably this the next best thing because it uses restak eth right it's not using its own token it's using the similar n operators to what ethereum users not that's not to say that it's equal to ethereum security far from it but if you're if you're looking to rank these things in terms of

their security properties I would say it would go ethereum layer one you know igen da and then after that I don't know what the ordering would be from there right um you know Celestia is interesting from a tech perspective because they have data availability sampling and which is part of the full uh dank Shing road map things like that um but generally when I kind of go down the list here it's hard to rank outside of the the top two there but at the same time right as I said igon da isn't live yet there could be other security holes to it it could be like very very centralized at the start there's different considerations here but it's obvious that the gold standard of data availability is ethereum layer one and then I think there's no argument to be had there I don't think anyone would

argue against that but in return for that gold standard you have to pay right it's not cheap to do this um and now the other stuff that um Ian is working with near protocol on is these cross rollup transactions um that are cheaper and faster now I think this plays into the data availability stuff but generally when it comes to cross rollup transactions or composability and interoperability between rollups I see this narrative a lot on Twitter about how this is like a deal breaker for ethereum's rollup Centric Ro map or a deal breaker for l2s like I feel like these people don't actually talk to the users of layer 2s and they also don't understand that it's not a deal breaker because it's just an engineering problem that will get solved right it's not like we don't know how to solve these things we've already solved them at to an

extent with Bridges like I talked to users all day every day right maybe not all day but like I talk to to users every day about this layer two users not once not once have they ever complained to me about lack of composability or lack of inoperability or having to bridge anything like that now don't get me wrong that's because they're Crypton native users they're probably more tolerant to these sorts of things and they probably don't mind as much but when it comes to obviously the rest of the users of the planet like Mass adop when it comes to mass adoption it it becomes a different calculus there but I've actually got a tweet that I want to talk about in a little bit which covers that point so I'm not going to not going to talk about it now but yeah cool I guess like still cool to see Nia kind of

trying to add more value to ethereum here for those of you who don't know ni has been around for quite a while as a layer one I do think that even though they're a layer one and they said they're going to stay at layer one they can still add value to ethereum right like not every layer one is created equal like a lot of them are hostile to ethereum of course and I wouldn't say that Neil wasn't trying to compete with ethereum to an extent but if their latest kind of thing is to work with the ethereum uh I guess like layer 2 teams and reaking teams like Ian leer to basically bring value to ethereum while also trying to obviously bring value to their own protocol I don't necessarily see anything wrong with that because it then they're just competing in the free market really right and as I said when

it comes to data availability it's a race to the bottom it's a commodity um in terms of rankings I gave my rankings of like security because I think it all comes down to that in the end right if it's a commodity then you will go for the thing that has the most security and you'll do like a cost benefit analysis as well because cost does play a part in it but at the same time you're paying for the block space now if you are getting Quality Block space but it's costing you a bit more than uh you know you know block space that is less secure and less quality then you're going to pay that bit more to get the quality right it's like anything in life really I mean you can go buy a you know $20 pair of shoes from uh you know some some

super chain right because you're like okay I'm going to use these uh these shoes for a bit it's okay if they break cuz they're only $20 I'll replace them but then you go buy more expensive shoes and they last longer and there's actually kind of a a cost benefit analysis done on this where essentially that the person who buys the $20 pair of shoes actually ends up spending more in the long run because those shoes don't last as long and they have to keep buying it right whereas the person who who up puts up front you know maybe $200 for for a pair of shoes it lasts a lot longer and they actually end up better off but of course it comes down to what you can afford at the time right there's a reason why people prefer to buy $20 shoes at that point in time rather than

$200 pair pairs of shoes so there's a different analysis there so I think the same is true for Block space and for de availability so it really depends on the rollup you know it sorry I guess it depends on the too it depends on the project and depends where they want to settle their data to and the funny thing is is that you could technically settle your data to multiple data availability networks and you could also give users to store the data themselves while also telling them hey you know the da the data will be um stored here for a little bit but if you want it permanently you can store it yourself and that that's also another consideration as well it's like the permanence of the data which is a whole another discussion and I'm not going to go on about that too much cuz I

just realized I'm already kind of 20 minutes in and I've got a bunch of stuff to get through so yeah you can go check out this link it in the YouTube description below all right e e from ethery is now live on mainnet so their first set of whitelisted users have been notified and are able to Mint eth um ethi will continue to Whit list more users to Mint over the upcoming days you'll be notified via email when you have been approved the Whit list applies to Ether do fan as well so you are only able to Mint a fan uh or unwrap into e if you're on the white list now this is a for those of you who don't know this is a new LST e run by eifi here you can go check it check out their website to get more details on this and I don't know if

you can still sign up for the wait list I I can't remember actually I remember I might I think I did highlight the weight list on um the refill uh once upon a time but I don't know if you can if you can still sign up here but you know if you can it'll be on the website of course but yeah just wanted to highlight that that's now live on mainnet and they are inviting people uh that were whitelisted to uh to Mint their e here all right so I did mention earlier in the episode The vitalic has apparently revived plasma now for those of you who don't know what plasma is plasma is a funny thing it was one of the original scaling solutions for ethereum that basically came about after State channels so in terms of like layer 2 scaling I would say the start of it

was lightning Network which was State channels right which were implementation of State channels which came over to ethereum as state channels I remember M go was trying to do it uh Ryden or Raiden I don't know how to say that word I don't know how to pronounce that word sorry uh network was doing it and there was a couple other other things out there then plasma came along and everyone pivoted to plasma and everyone was trying to do plasma but then there were a lot of flaws within plasma and it didn't really do what we wanted it to do which was basically have an evm on the plasma chain and there were like weird exit games and stuff like that that wouldn't really work with what we wanted to do and then of course out of plasma came Roll-Ups as we know them today optim optimism or op Labs was was

originally plasma group so they were working on plasma then they changed themselves into a you know a group focus on optimistic rollups and they are where they are today here now the reason why valalik has brought back plasma or at least kind of posted about plasma and said you know what can it be used for is because he thinks it can be used for a way to improve the security and general uh kind of um reliability of validium so just a refresher here a validium is something that stores its data offchain while posting its proof onchain so it's not a full rollup but it's like a hybrid where essentially if the data is is lost because it's not stored on ethereum layer 1 it's stored somewhere else the funds are frozen instead of uh uh instead of stolen so they your funds can't be stolen but they they can be

frozen if the data is lost here um and what vitalic does in his blog post is he basically says that the exit game that was used within plasma could actually potentially be used within validum specifically ZK validium in order to improve their overall security and and robustness uh and and generally uh stuff from there now you can check check out this post for yourself I'll link it in the YouTube description below I haven't had time to digest it enough to actually understand exactly what's going on here um because it is uh quite Technical and and also I haven't it hasn't uh kind of been out there long enough people to kind of I guess give their takes on it and see if this is what actually work you know vitalic awesome very smart has a lot of great ideas but I never like taking anyone any one person's ideas as

like gospel or as like a good idea until I see uh other people talking about it until I see other people kind of trying to break the idea so to speak and this is happened before with I think one or two of vitalik's ideas in the past where he was like completely wrong on something I believe or at least he came up with a way to do something that was just like suboptimal and people basically said you know how we do it this way and he basically pivoted to doing it that way and was and abandoned his old research and that's actually a pretty good quality of italic if I must say that he's able to do that but anyway you can go give this blog post a read I'll link it in the YouTube description below but yeah it's kind of funny that we're talking about Plasma in 2023

because for those of you who weren't around back in 2017 2018 some little bit of 2019 it was all the rage like it was the way ethereum was going to scale but there were so many holes in it and there was so many offshoots of plasma I think I ended up reading there were like eight different offshoots of plasma and I think the most uh popular one was something called plasma cache but because there were so many limitations to it because there were so many holes in it we ended up uh pivoting obviously to optimistic rollups but and now we have ZK rollups as well and ZK avms so vital is basically proposing okay well there's this thing called validium which is like a hybrid approach why not uh use the plasma exit Game design for things like ZK validium so yeah you can go

check out this post to get more details on that I'll link it in the YouTube description below for you to do so all right so another team or another project or I guess like another entity has joined the polygon family here so it was announced yesterday that okx one of the top centralized exchanges is building their own layer 2 on ethereum using polygon's cdk called X1 so they say here X1 will be a secure highly performant platform for building daps with gas fees paid in the O okb token uh with X1 okx users will be able to tap into ethereum and soon other cdk chain liquidity while ethereum devs will have a decentralized protocol for building

Primitives previously unfeasible on okx from defi to Social and everything in between so obviously okx is not the first centralized exchange to launch their own chain binance did it coinbase has done it with bass and now with okx doing it uh they and Kraken there's rumors Kraken is going to do it as well remember I covered that last week and now okx is doing it as not a full roll up they're doing it as a ZK validium with polygon technology so they're going to be storing their data off chain somewhere not sure where they're going to be storing their data right now whether it's going to be on one of the existing data availability networks or they're just going to be storing the data themselves who knows right I expect the okx L2 generally to be pretty centralized though just because it is a exch you know it is a centralized

exchange L2 it's going to be centralized from the get-go I mean they all are but it's going to be interesting to see how it decentral decentralizes over time and how it actually interplays with the rest of the polygon ecosystem because as you guys know polygon is building a super chain very similar to what optimism is doing with their with their RP stack technology where essentially everything can interoperate and um and and become composable and and bridging is very seamless and and things like that uh and and yeah I mean I think polygon and optimism are basically neck and neck right now with how many teams and how many projects they've onboarded to launch their own l2s here but just really really exciting to see this because as I said okx is one of the biggest centralized exchanges out there um especially uh I guess outside of the

US um because obviously coinbase dominates in the US there but great to see another another kind of big entity getting involved with building a layer two on ethereum and congrats to polygon on the big win here all right so speaking of optimism they have completed their Canyon hard Fork on test Nets and went off without a hitch so everything went through smoothly and you can see here uh they completed it with their Partners conduit and uh and and Bas of course uh uh for supporting them in this upgrade here but I don't know when the main Net's going to be I think maybe main net will be in the new year I don't know if they're going to do it over the holiday period but as I said this hard Fork included support for things like uh the recent chapella upgrade and things that went

with that and a bunch of other things I think I highlighted this last week actually so I'm not going to rehash it now but just wanted to note that yeah the hard for AC at on test Nets went smoothly which is which bodess very well for the fact that we obviously want to get this on mayet as soon as possible all right risk zero has come out with a new proof of concept here we're sharing their latest showcasing their latest ZK Tech something called Bonsai pay an open- Source zkp payments platform that enables users to send crypto to any Google account using ethereum now they have a demo here at pay. demos. bond. XYZ which I'll link in the YouTube description below but basically they say here Bonsai pay significantly improves the crypto payment experience by replacing

complicated wallet addresses with a userfriendly email any Google account is compatible with the service and requires zero additional setup to receive funds us users send their crypto to an email address using an escro contract on ethereum recipients can then retrieve the funds by logging into Google and generating a ZK proof under the hood they're using JWT and oidc verification on top of the risk Zer Z KVM all logic is coded in Rust and easily upgradeable and extensible across login providers and identity Services bonsay is currently deployed as a demo on seoa so it's not on Main net just yet but this is what I've been talking about in terms of like this concept of ZK C co-processing or ZK proving um generally where the computation is done like

offchain in a centralized way but it doesn't matter because the proof is posted onchain and you know without needing to know what happened offchain that you're not going going to get rugged or something fishy isn't going on you know that uh that risk zero in this case is following the rules that they've set forth here and you also get to do things like this where essentially you have like a trustless escrow with a Google account like that's actually insane to me that we're already at that point because payments as I've said before is dominated by Tron right now but it's only dominated by Tron to the extent that the the the way we do payments today where people use a metamask wallet or a Tron wallet wet um and basically to to to have usdc in usdt

I should say sorry tether in there and then just send a normal transaction they're not using ZK Tech they're not even using layer 2os because they're using Tron right um and they obviously originally were doing it for the cheaper fees but right now the fees are not as cheap as they once were but if you want to upgrade the payments experience and take it to the next level it's so much more than you know cheaper and faster it's doing stuff like this right it's integrating this Tech the ZK Tech that we have and basically making the payment experience as seamless as possible and as trustless as possible without having to get the users to jump through a million different Hoops so this is very cool you can go check the demo out for yourself I'll link it in the YouTube description below for you to do

so all right Tao has introduced something called the based booster rollup or bbr which is a bbr yeah a new major milestone in Tao's road map say they say here we've been developing the bbr design for the past few months now I want to share what it is how it works etc etc so basically what the bbr design does is combines two important pieces of ethereum scaling based sequencing and boosting based rollups inherit the L1 decentralization security and liveness because they use the ethereum L1 validator set in order to sequence the transactions uh and they're arguably the most effective decentralized and ethereum aligned way of running running a rollup and then they asked the question what if you could amplify the benefits of a based

rollup by adding out of the box native ethereum L1 depth scaling to it and that's exactly what booster rollups offer imagine deploying your dap once and having it scaled automatically across all l2s if extra block space is needed more booster rollups can be added without any additional setup work in simple terms booster rollups work similarly but to adding extra CPUs ssds to your laptop they make your computer more powerful allowing apps to work faster and grow bigger um for more technical folks boost the rollups Shard the execution of transactions and the storage so I mean this threade goes on for a little while so you can read it um to get a good idea of what's going on here I'll link it in the YouTube description below but there's actually a nice little kind of chart here showing this you can see here uh ethereum L1 at

the top and then booster rollups kind of feeding into that and you can deploy your dap on L1 and then execute all the transactions on L2 using kind of the based rollup design which honestly I think is going to be one of the winning designs if not the winning design when it comes to rollups because if you can sequence your rollups using ethereum L1 and getting the benefits of obviously the decentralization and security and and censorship resistance of ethereum L1 then uh you know you're definitely going to want to do that but at the same time it it kind of changes the calculus on value capture like as a rollup how are you capturing value from that directly like if you're not running your own sequencer anymore then you're not capturing value unless you're like an

eat Staker so we'll have to see how that kind of ends up looking like in in the end here but yeah great to see Tao innovating on this design here and you can go give uh their blog post a read and their um and their Twitter thread a read I'll link it in the YouTube description below for you to do so all right so grow theie doxyz has a great Twitter thread covering all of their layer 2 analytics on their website so I've obviously shown this website a bunch of times on the refill before but if you were kind of confused about what they're actually what what is actually on the site and how to read it and and kind of what sections to pay attention to this thread covers that all for you so I just wanted to give this thread a shout out which I'll link in the YouTube

description below but I have to say grow. XYZ is still the number number one place that you should be going to to check on all the uh different activity happening on the l2s they have so many different metrics that they cover it's actually crazy you can see here all the metrics that they cover right things like daily active addresses you know fees paid by users the amount the rollups are paying to L1 onchain profit so so on and so forth so yeah you can go check out these thread for full breakdown of that I'll link it in the YouTube description below for you to do so all right so I spoke a little bit about what I about part of this tweet before but I put a tweet out over the weekend where I said two things that I strongly believe 99% of people aren't

going to interact with onchain apps in the way that Crypt natives do and most computations do not need to be done onchain and are far more effectively and efficiently done offchain with a simple proof posted onchain I'll Attack the first point first up so you guys know my view on crypto usability generally and what the end state of people using crypto networks is going to look like it really is just going to look like in a a completely abstracted away thing where they have an app on their phone or they're using one of their existing kind of like Banks even or brokerage accounts or anything like that to tap into the onchain world um and you know they're using a wallet on their phone like coinbase wallet for example or rainbow wallet or whatever wallet it is right to tap into all of this and then it's

completely obstructed away to the point where it's like a couple of clicks there's no gas fees that they have to look at there's no complexities around kind of like bridging or sourcing liquidity or anything like that all of that is completely abstracted away like completely I mean to the point as I said where it's a couple of clicks for people to do anything they want and they don't even know that it's happening on chain they don't even know what chain it's happening on because it's been all extracted away so I don't want to spend too long on that point because you guys already know my view on that and and I think that it's not a view that is really hard to argue with at this point because what US crypto natives do the ux Hoops that we jump through just to be able to use a lot of this stuff I'm I'm

I I'm very much convinced that most people are never going to do that even though there's money to be made they're still not going to do it right and that takes me to my second point which is around doing computations off chain now I spoke about this before in the context of bonsai pay about how they're doing kind of ZK coprocessing doing the things things off chain but it also applies to thing things like what chain link is doing for example but I wasn't really talking about chain link here I was more focused on like the ZK code processing and basically doing all of the computations on chain instead of doing them onchain and then that ultimately brings us back to the original value prop of a blockchain I am strongly believe that the only value prop of a blockchain is to be a sent layout really

I don't believe that the value prop of having a a blockchain be a computational layer is actually something that is long-term sustainable and and and in me saying that another way to think about it is the monolithic L1 architecture versus the modular architecture the monolithic architecture is the one that puts heavy emphasis on doing computations on chain right like for example salana wants everything to happen on layer one all of the computations to happen on layer one and that's a you know A Fine Design to pursue if you want to pursue that but I don't think that's long-term sustainable for a number of different reasons um whereas the modular design says okay why don't we keep like the minimum amount of stuff that we need to keep on the layer one which is the layer that's replicated across thousands of nodes and validators

and and all these different entities across the world and then we basically scale in layers where essentially we can have the guarantees that these layers are doing what they're saying they're doing and posting that proof down to layer one as a settlement layer uh and then be able to do all the computations offchain so essentially what you change it to is yes all the computations are done in a centralized way offchain there's no decentralization there but it doesn't matter because by using things like ZK proofs we can guarantee that the computation was actually done in a uh in in a way that is not you know fraud that is not done in a way that's going to rug users that is not doing something that it shouldn't be doing and that is the real key unlock here that is really to me what brings the original value prop

of blockchains back which is a trustless settlement layer which is basically a layer that you post a proof to that anyone in the world can verify themselves anyone in the world can trust because it's based on cryptography uh instead of trying to do all the computations on chain I don't think that's going to work I don't think that's going to be long-term sustainable I've spoken about this before you know not just not just kind of technical wise but also from the economic perspective or just from the fact that if you can get the same security or guarantees in the same trustless guarantees of doing it onchain versus offchain you would choose offchain every time because onchain is always going to be more expensive from a number of different angles it's always going to be slower like um I've been reading on the ZK provs lately in their end state that

they should be able to prove a um a ZK proof in 10 milliseconds right that is faster than anything in in in the world can be nothing in the world can be done that fast because even salana which actually optimizes for this they optimize for latency they they're limited by the speed of light right so for the whole network to come to to consensus on this stuff they get it down to 400 milliseconds so they're limited by the speed of light and and obviously if they're trying to do it globally they're they're limited by that right so when you're doing it in 10 milliseconds you're not limited by the speed of light because you're doing it on one server you're doing it a one computer right so you do it much faster that is actually pract it's impossible to do it faster than that in a distributed Network

because of the laws of physics like this is not up for debate the laws of physics dictates that you obviously can't travel faster than the speed of light and then throw in all the other things that that have to be thrown in when it comes to latency across the internet right so and when you look at it like that then okay well if you can do a ZK proof in 10 milliseconds and then post that on chain right that is just vastly more efficient than doing it on chain having to have it replicated across all these different nodes having to have these nodes uh you know be paid in some way to to actually be up and if it's a heavy node it's going to cost more right heavy validator it's going to cost more so yeah I mean I I you guys know my view on this I am

very very bullish on the modular design very very bearish on the monolithic design um and I think we're going to say that play out but it's going to take the long term for it to play out I think that the ZK Tech as as far long has it's as it's come already still got a long way to go but we're already seeing the fruits of the labor we already have ZK avms guys and yes there are issues like centralization with these l2s and and and potential governance things and blah blah blah and whatever else but I don't think that takes away from my point in that believe that most computations do not need to be done on chain and and pretty much like all of them and you know I would say the vast majority of them are not going to be done on chain

going forward you simply got just going to post the proof on chain You're simply going to post everything you need to on chain in order to to have the most trustless and secure uh computation be done offchain uh and Away you go users can trust that businesses can trust that entities can trust that governments can trust that and it's all there on the global siment layer known as ethereum credibly neutral decentral ized super secure right because all that e Stak is securing it um with punishments like slashing CU there the rest of the proof of State networks I think or at least the most popular ones don't have slashing so there's no punishments for doing anything wrong um and you have all those security guarantees uh in place there uh for for ethereum layer one but yeah anyway enough raning about that moving on from that one all right so I

came across this update from Brave so brave the web browser uh they basically put out that there is a new feature in the brave wallet they added support for ERC 4361 which is sign in with ethereum so you can sign message more messages more clearly and safe across the ethereum ecosystem and it replaces the fragmented web 2 logging experience with a single unified logging credential secured by your crypto wallet I love seeing this guys like the left here is just crap sign in with Google sign in with Facebook sign in with Apple sign in with Twitter screw all that sign in with ethereum let me sign in with my ethereum address right let me let me just sign a message with my private key and away we go and let me kind of do anything I can do do on chain within your wallet within

your kind of uh I guess like software whatever it is that stuff I love it I love and I love that it's called sign in with ethereum because I think that there is a kind of I guess like obviously Big Brand to ethereum and and a kind of big Network effect there everyone has an ethereum wallet getting an ethereum wallet cost nothing signing in with ethereum costs nothing because uh there's no onchain transaction it's just signing a message which you can do for free obviously because you're just signing with your private key yeah I mean I am very much looking forward to more apps and software creating this into their stackyard but great to see Brave uh do it there all right speaking of making things more seamless Dan Romero announced that there's a new feature on warcast so you can now mint from your

feed so mint an nft from your feed on farcaster on warp cast and own it on chain so he says yeah mint an nft on chain directly to a wallet you control all without leaving your feed no buying bridging app switching or gas just a few Taps and get back to browsing now this is what I'm talking about guys when I say we're we're going to get to the point where it's just two clicks to do anything watch this watch this video and I'll describe the video for those of you listening to the podcast in their feed clicks the mint button mint using 300 warps which is the warp Caster currency completed done that's it that was that was that was like one it's two clicks literally two clicks as I've been saying guys this is the future of onchain for everyone it's one two three clicks at

most that's the future not what we currently have definitely not what we currently have um and that's what we're going to get to in everything not just farcaster but I figured that was like a perfect way to kind of um show you guys what the what it actually looks like in its end State here because that's the future of uh crypto ux to me right finally here I just wanted to give a shout out to that podcast I did last week with Collective shift that went live yesterday I believe it was a really fun podcast to do guys I never do in-person interviews because I'm on the other side of the world to pretty much everyone that that that usually interviews me but we did this in a recording studio then there's a video here um and and it's in I guess like gr video and podcast form we covered not

just eth but like everything crypto we talked a fair bit about like I guess markets and Market cycle so if you're interested in that you can check that out but yeah I had a lot of fun with this one so definitely go check it out I'll link it in the YouTube description below for you to do so but I think that's going to be it for today and I'm going to edit out those two coughs in the episode you won't hear them I'll edit them out but I did cough a bit I hate being sick it's not Co funny enough it's just like a weird cold and it it kind of like wiped me out a little bit for the past few days but I'm back now hopefully back tomorrow as well but yeah 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 the newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone