Staking chat, Kraken Wallet and more - The Daily Gwei Refuel #766 - Ethereum Updates

Transcript

hello everyone welcome to another episode of the Del refuel where up latest news and E me system I'm your host and this isday 18th of April 2024 all right everyone let's get into it so I've been terrible this week guys two rug fuels in one week I don't think that's happened for a while but I do apologize for that for missing yesterday's episode there but good news is there's a lot of stuff to get through today because I missed yesterday's episode a lot of stuff going on in the ethereum ecosystem uh but yeah hopefully I don't think I'm going to miss tomorrow's episode and depending on how I'm feeling I might do a Saturday episode to make up for the fact that I've done two rug fuels this week uh but yeah I just wanted to I to mention that there and apologize there for that but

anyway moving on to everything I missed over the last 2448 hours in covering on the refuel uh we're starting off today's episode with an announcement or I guess like a bit of a tease from Trent van EPS who is one of the people behind the protocol Guild and also just basically does a bunch of different things within the ethereum community where he announced on Twitter that protocol that the protocol gu will announce V2 soon which includes the 4-year vesting uh for the um the protocol Guild uh recipients uh and then he said in my opinion time wa weighted Registries are a simple plus powerful primitive for comments seen funding we need more experiments if enough people engage I'd love to get help uh exploring an ethereum Dev tooling guide for libraries smart uh guilds not guide for libraries smart

contract languages Etc here so this is really cool I think that protocol Guild is evolving uh you know into their V2 here which will have vesting on top of it I think time weight vesting I mean I agree with Trent time weighted vesting when it comes to stuff like this uh are definitely you know very simple and definitely kind of doesn't come with the complexities of like Milestone based investing investing and stuff like that right whereas essentially with something like the protocol Guild it's less about the Milestones which which are I guess like measured in other ways but it's more about the fact that okay well you know you need to be a long-term contributor to the protocol Guild uh and then uh it's not based on any specific Milestones it's more like oh sorry long-term contributor to ethereum core

development it's more so based on on you know how long you've spent contributing to etherum core development and research here so it is a really nice in incentive alignment thing I think um but yeah anyway you can go check out Trent's tweet and kind of I guess like DM him if this is something that you're interested in as well all right a big announcement from Lio over the last couple of days so they've announced something called the simple DVT module or at least released something called the simple DBT module which I've talked about before on the refuel but basically there is going to be 72 net new note operators including solo stakers that will be powered by obal's DVT technology that will be part of the Lio ecosystem here so they say net new eth deposits to Lio on ethereum

will be automatically directed by the staking router to the simple DVT module until the module reaches the limit of dis depositable validators or maximum capacity now for memory they're starting this off with a quite a small percentage of uh I guess like the the whole Li protocol I believe that yeah so the module was initially capped at 0.5% of the total lto stake with the option to be increased via ad Dow vote and is expected to allow for the addition of 250 net new node operators overall so they're starting with 72 and they're going to uh widen that up to 250 that new node operators uh overall once they've kind of uh you know flesh this out further and put this on Main net here now I did say I think on not last week one of the re recent episodes how I

was talking about the fact that L's market share has been coming down but they're not out uh I think Lio is definitely not out because they've still got a very large market share but they''re also going to go through this Revenge Arc of sorts where essentially they've been working on this DVT stuff for quite a while now and I do believe they're working on a uh core kind of reaking module I guess you could call it for for Lio here so Lido's market share may be down but yeah they they're definitely not out and they're definitely working on a lot of different ways to increase their market share again or at least to you know not not only increase their market share but also make Lio more distributed and more decentralized uh over time as well because you know the the main concern I guess with li has not necessarily been

around their note operators I think the main concern has been around governance risk uh and governance risk in regards to Lio as a protocol and the ldo token and so on and so forth but I think when it comes to the other risks associated with with Lio such as like a smaller node operator set I I don't think those are as pronounced because as I've explained before when it comes to node operators under Lio the governance could technically force them to do things but they're all independent they're all uh geographically diverse uh and they're all got they've all got their own decisions of whether to follow what the Dow says or not and if that means they get kicked out of the lto system then uh depending on the Node operator they may take that path because for example if Lio the governance was basically to say

to these node operators hey you need to begin like censoring you know such and such transactions or such and such contracts uh and then they and then the lighter operators say well we don't want to do that and then lighter the lighter governance comes back and says okay well we're going to kick you out of the uh the lto protocol they could do that that's a huge risk obviously the token holders can actually do this at least in the current iteration I know that they're going to work on this uh dual governance module where essentially it won't just be up to the ldo Token holders it'll also be up to the um St holders as well uh but at the end of the day you know that is the the biggest risk there around the kind of governance umbrella around later and and as I said

that's just one risks getting removed from the lter protocol there but the node operators themselves are independent which means that if they do get up to let's say 250 note operators and they're all independent of each other and let's say ler has like 25% of of the whole kind of like staking market share that is actually relatively okay I think because yes it's a huge share of the the network still you know 25% is a quarter a quarter share still but if they've got 2050 node operators who are all kind of diverse distributed uh and uh you know even if some of those node operators include not just institutions but solo stakers and so on and so forth then I think that really adds a lot of uh I guess what's what's the term I'm looking for here maybe adds like a

counterweight to the fact that Lio as a organization as kind of like a governance entity uh is 25% of the ethereum chain or ethereum Beacon chain ethereum staking uh share there but anyway very cool to see this and cool to see that Obel has been chosen as the tech stack of course for Lio to be doing this pilot program um but yeah I'm very curious to see how long the timeline is for them to increase it from that 0.5% to much bigger because obviously 0.5% is very very small but obviously they're doing it for safety reasons too they would don't want to kind of uh on board this and and wreck the whole protocol because something goes wrong so they're being prudent here uh with this but you can go check this blog post out for full details on this I'll link it in the

YouTube description below for you to do so all right onto some L2 news so as you guys know okay X has been uh working on an L2 that they've going to launch uh that's powered by polygon's cdk uh kind of Technology here now okx I think is the second or third exchange to launch their own kind of L2 I know that binance obviously already has their own chain BSC you know binance was actually ahead of the curve here on on the kind of side of centralized exchanges launching their own chains they didn't do it as an L2 of course but they did do it as like an evm chain that they forked off of ethereum and it still to this day has a lot of usage so so binance went first then there was coinbase that obviously has done Bas now there's okx with their own

L2 built on polygons technology I believe there's going to be others I I think Kraken signal that they wanted to do in L2 I don't know what's happened there believe there's going to but I believe there's going to be others and it just makes sense I think because these l2s sorry these exchangers have seen the success that coinbase has have with Bas and they're thinking to themselves well you know we have a lot of users and these users we can bring on chain so why why not bring them on chain to something that kind of can profit from essentially now I don't know what the success metrics is going to I know what the success metric is going to look like for each of these chains but I don't know how successful that each of them are going to be like I have a lot

of confidence in base with with coinbase because they have such a large user base especially a very diverse user base as well I would say but I don't really have too much insight into these other exchanges especially the ones that aren't based in the US or Europe like the Asian exchanges uh I just don't have much uh much insight there and I think that there is a big Market there of course but I don't know what that's going to look like so it's just cool to see that more of these experiments are playing out and it's cool to see that they're not all just going to One tech stack obviously bass is built on the uh op stack okx is built on the polygon kind of cdk Stack here uh but then future ones who knows what they're going to be built on we're going to have to

wait and see there but yeah I think that I just wanted to kind of point that out and had a little bit of a discussion around that because this is a theme this is a trend that's going to continue going on from here all right so scroll has an update on their roll out of blobs as well as a bunch of other upgrades coming to the scroll zkm so they've introduced something called the Beni upgrade I think that's how you say it uh which basically details that EIP 4844 or blob support will be going forward on scroll at the end of the month so end of April here and they've also got a bunch of other uh kind of upgrades coming as part of this uh this bigger upgrade here which I'll link in the YouTube description below for you guys to go check out but I think the scroll is one

of the last kind of uh I guess like more well-known l2s that haven't uh implemented blobs yet it's taking them a little while by the time that goes live it will have taken like 6 months from denune going live but I don't think that's too big of a deal cuz once they're enabled you know everyone can get the benefits from them and it's all well and good there's no need to to kind of uh I guess like worry about it then um but I don't think there's any others out there that haven't implemented blobs yet from memory maybe polygon zkm I think is the other one maybe I don't I don't actually know off top of my head right now but it seems like the rest of them at least the most well-known ones have uh integrated blobs at this point so yeah I mean it's just scroll now

that's um that needs to do this by the end of April but as I said blobs are not the only thing that are coming as part of this upgrade there is a bunch of other protocol enhancements uh coming uh that will in that will drop the cost of scroll by up to 10x so you can go give this a raid I'll link it in the YouTube description below for you to do so all right so L2 beat has a new page on their website called costs which provides an in-depth insight into the security Investments of rollups on ethereum so you can explore it here on this page at lb.com scaling um uh cost here and then you can actually see what the onchain costs look like over time for each of the rollups or each of the l2s really uh using blobs

or using call data or whatever here as you can see the the kind of substantial difference in the the costs here especially on this chart like if you go and look at this chart over time this is the last 180 days let's just do maybe the last 9 days you can see in the blue this is call data so obviously before um Denon went live on March 13th everyone was using call data nor one was using blobs uh and then you can see it split up into cold data cost compute cost and and general overhead cost here those didn't really change uh uh kind of uh I guess like sorry the compute costs kind of didn't really change that much uh but the call data cost definitely did and you can see it fell off a cliff obviously on March 13th when Den K went

live fell off a cliff and then people were still using call data uh it went from like Millions to to less than a million here but people not people but like rollups and we still using cor data but then slowly over time uh less and less C data is being used and the costs have come down a lot and they're using blobs now but you can see here there was a little spike in blobs this yellow this was due to inscriptions cuz blobs uh are very cheap right now and have been cheap for the majority of their life where basically they've been not just cheap they've been free essentially but then they spiked up because of inscriptions and then the l2s had to pay uh to to use the blobs and then had to pay a greater fee there but right now we're in a very

lowc cost environment for uh for rollups here you can see the blob cost is basically nothing it's pretty much free I I think that's accurate to say right now it's pretty much free but we don't expect that to last obviously as I've shown from different dashboards um before about how the the fact is like blobs I mean actually I can bring up this dashboard for you guys right now um I want to bring I shouldn't just speak to it I should have it in front of me so you guys can see what this looks like so this is Hobby's blob dashboard you can actually see what this looks like so right now we're not at the target of three blobs per block we're at like 1 Point what is it 1.6 blobs based on a 2-hour moving average here and that means that the gas price of blobs is

basically zero right now now when we get to the Target of three and then uh we go above that Target then that's when the blob price starts going up because people are trying to outat each other to to get blobs in and that's what happened when inscriptions were were taking up a lot of the uh blob space there it basically set blobs up now people may may be asking you know what's going to cause this to go to the Target of three and above well essentially just more usage overall just more usage of l2s because as l2s scale up themselves and as they use more gas per second you know bass has this goal of doing one gigas per second as they do that they produce more and more data that they have to post down to eth L1 uh as blobs and then that will cause blobs to uh I guess like

be more in demand and then you'll see that go up there but the thing is is that over time we're going to be increasing the size and count of blobs so it is that kind of game that I've been talking about uh you know for months now where essentially we're going to have this this game between data and ex execution costs and we're going to be chasing that for the foreseeable future essentially uh there but that's why that's like that right now so uh I mean I wouldn't expect this to last honestly especially as uh you know if if we go into another kind of leg of this bull market and it starts getting crazier again I definitely think that it's not going to last very long and I definitely think that uh we're going to see that Spike up especially if people start doing uh inscription stuff again like

it's dumb to do it but hey in a bull market dumb things happen because there's money to be made doing dumb things and we could see that play out again there so anyway you can go check out this blob dashboard for yourself I'll link in the YouTube description below uh but really cool new page from L2 beat here tracking all of these onchain costs all right speaking of costs related to l2s grow the P has a new tracker here that basically allows you to see the different costs on the different l2s uh over time and what they are kind of right now so if you go to this page on um on grow the pie I'll actually go to the page here for you guys so this is a brand new page fees. growthy doxyz you can see the current median sorry the median fee uh which is basically uh

shown here across each of the different l2s uh the fee to transfer e and the feet to swap tokens and then also what I found really cool was this kind of hourly heat map that they've got here which basically you can scroll over I think this covers the last 24 hours where you can see what fees have been like over the last 24 hours when they've been cheap when they've been expensive and I reckon if you were to Overlay like US market hours over this you would see that there it's it's most hot during US market hours uh and then the green is is kind of like the off peak and this actually Maps really well I think for my time zone I mean I'm looking at this now and I can see the green here besides op mainnet which is a outlier but like most

of the green here started about I don't know like 10 hours ago or something and that's when US market hours pretty much like ended so you can see that that's that's very sensitive to that but then op main net is very insensitive actually their peaks have seem to seem to be over the last few hours which is not US market hours it's not even really European market hours I mean it is to some extent but it's it's definitely Asia hours so yeah interesting Dynamic there but regardless of of the heat map uh I do like how they've done this medium fee breakdown here in sense so don't uh this is actually so I like it but it's also a little bit confusing because you might be reading this as 24 cents uh when in reality that's not what it is so this 0.24 cents is basically uh

from my reading and as I said this is confusing right now so this is basically like a fifth of a cent it's not 2 and a half cents it's a fifth of a Cent and then you've got like half a cent you know 3/4 of a Cent and then 1 cent here and you can go all the way down to the bottom of ethereum main net which is 311 which is just like $311 from my reading here I do think that is a confusing way to show it um I I don't really see currency kind of shown like that very often so maybe maybe the grow the pie team will change that based on feedback I mean I haven't given this feedback to them maybe they're watching my show right now but that is a little bit confusing uh to to to me to to read there U maybe I'm just

silly the way I'm reading it um I think this is the same way that maybe gas fees. uh shows it but they don't yeah they do but they don't have like the sense word here I think that might throw some people off but when I first saw it just intuitively I just looked at this as you know 0.24 as like 20 cents because I didn't read the cents part here to start with so maybe that's just like a UI thing they have to fix there but that's how to read it right now uh and you can see that you know most of the the rollups here most of the l2s are incredibly cheap to use uh right now there but anyway you can go check this out for yourself I'll link it in the YouTube description below for you to do so all right so nebra has announced a

$4.5 million preed plus seed fundraise here led by nent and bankless Ventures now I should disclose that I participated in this round as an angel investor here and I also have exposure by at bankless ventures because I'm an advisor to bankless Ventures um but the reason why I wanted to highlight nebra for you guys is because it is a really really cool project honestly like one of the cooler projects I've come across recently where they're essentially creating a shared proving layer for ZK proofs generally I mean that's like the highest level I can basically put it here but the way they describe it is basically they want to scale zero knowledge proof verification through recursive proofs so that ethereum zero knowledge proof ver verification

capabilities can be scaled much cheaper and more composable so by like composing these these proving so I don't I want I want to try and explain this in a simple terms as possible but basically what what happens and again this is high level is essentially by composing all this stuff together by aggregating all these proofs together and by approving it through aggregation essentially you collapse the cost down for everyone so the I guess like incentive is to join this proof aggregation and to basically enjoy the cheaper costs for everyone really everyone that that kind of joins in here which I think is is really really cool I think it is something that obviously has product Market Fit already because we already know that ZK proofs generally have product Market fit so that this is basically an extension of

that so I was super excited to get the opportunity uh to back this team I think I have talked about nebra potentially on uh the refu before but they're a yeah as I said really cool project really smart team they already have uh things up on test net so there's a demo here that you can try on testnet today um but honestly I think that this is not something that's obviously user facing so it's maybe not something that you guys may might interact with directly but it's definitely going to be passed down to you or passed on to you as you know more of these kind of ZK VM ZK rollups they use this batch proof verification then those costs are going to be passed down to you as a user so ultimately you will feel the impact of this as a user just not directly right uh it's kind of like

the same thing as as blobs as a concept where essentially we all felt the reduced transaction fees on l2s because of blobs but we weren't interacting with blobs directly like none of us is posting anything to blobs like maybe if you want to set up some kind of inscriptions then you can do that but not really you know we're just getting the net benefit which is cheaper fees on l2s and the same is true for this now of course this doesn't just apply this being nebra doesn't just apply to l2s because ZK proofs have many many use cases Beyond just uh scalability or Beyond just uh ZK VMS they also have privacy um you know uh implications there that's like the second biggest thing besides scaling but also stuff around identity which falls into privacy so this helps with that as well BR to bring cost down because right now the

main costs of ZK rollups is the proving cost and if we can bring them down not just through aggregation but but through further optimizations across the entire stack here uh that's going to be better for everyone and that is overall going to be a net positive for every user out there but anyway you can go check out nebra for yourself I'll link this in the YouTube description below for you to do so all right speaking of fundraisers puffer has announced a $18 million series a led by brevan Howard digital and Electric Capital with participation from a bunch of other investors uh again disclosure I am an advisor to puffer here I did not participate in the fundraise but I an adviser to puffer just wanted to get that out there um but you know puffer is one of those liquid staking protocols that have really made

a name for themselves or liquid reaking protocols that have really made a name for themselves over the last few months among other heavy weights such as ethery and swell um I think puffer is really unique in how they've done their their kind of launch in that they're doing a proper direct vampire attack on ligher as I've discussed before where they brought in a lot of steth hasn't been converted into uh you know uh puffers validators yet so for example they haven't withdrawn the stth from Lio yet and then converted that into uh or sorry deposited into their own validators in order to essentially back puff eth with their own staked eth uh but that's happening and I I think I believe that's happening very soon which is very cool um and then once that happens you're going to see over a billion dollars worth of St just exit Lio and go into

puffer system which is something that hasn't been done I I know Diva originally teased this but it seems like they've pivoted to doing other stuff right now they yeah they originally teased this vampire attack that didn't really materialized too much but puffer has taken on taken that on board and it definitely has materialized there as far as I know they're the only one doing a at least large scale direct vampire attack on lighter as I discussed the other day when I was talking about staking uh there has been indirect vampire attacks where essentially because these other Protocols are offering incentives people have gone to them instead of Lio but this is a direct like vampire attack on Lio where essentially the STD is directly being deposited into puffer then it is going to be withdrawn from Lio then the E is going to be restak again with with

puffer's validated infrastructure so that market share actually directly goes to puffer and isn't part of lto anymore so that's what I mean by a direct uh vampire attack there but anyway congrats to the team on this race here I know they've been working on it for quite a while uh and and getting all these kind of different uh companies on board it's actually interesting some of the investors they have here like brev how a digital is a trafi company and Franklin Templeton is a trafi company and there's a bunch of others in here I believe that are just quite interesting names and it really seems like trafi not just because of the ETFs but I think just generally have changed their tune completely on crypto over the last like 6 to 12 months and they seem to be really wanting to get involved across the entire stack

because you know puffer is a liquid reaking protocol on ethereum that's like as deep as you can get or one of the deepest parts you can get into the onchain ecosystem here it's not just like an ETF that it works basically the same way as every other ETF works from uh I guess like the tradire perspective this is very different to that so to see big names like Brevin Howard and Franklin Templeton involved with this uh is is pretty promising I think and it really shows the change in uh Trend over as I said the last six 6 to 12 months of trafi really really embracing crypto now and honestly if I put my tinf fall hat on a little bit here I think that all of the tradire institutions that haven't embraced crypto yet are definitely working in the background to embrace crypto and I'm going like full tin foil

heart here and this is something that I actually talked about in the de Discord Channel you know if you if you want to look at like the SEC and their hostility towards crypto and then you want to look like you want to look at who's you know the chief of the SEC it's Gary Gensler okay who's his boss Elizabeth Warren okay who's her boss well technically Biden but uh and more so her her voters but also the people who fund her campaigns the people who essentially donate to her and it seems like the bankers are the ones that do that these days which is ironic because Elizabeth War originally ran for Senate based on being like anti-bank and you know holding the banks accountable for 2008 and all that but if I'm going like full tin foil hat here full conspiracy theory here which I don't think is too far of a

leap given the incentives here but I would say that these uh bankers and these tradire institutions they don't want to kill crypto they don't hate crypto but they want to slow it down until they can get their infrastructure in place in order to profit from it and as I said I don't think that's too tinf full hat here and the way they would do that is wield their power on the regulatory side so what's better than getting the SEC to just go after everyone for baseless stuff like going after Unis swop going after to coinbase going after to binance going up uh uh going after to Kraken right what's better than spooking the markets essentially and delaying the markets and delaying the adoption of crypto just enough for them to get their infrastructure in place and then they can profit from it again little bit

tinfal Hatty a little bit conspiracy theory there but I do follow that line of thinking sometimes when I look at this stuff and I look at the incentives at play and I just think that you know the fact that trafi is now fully embracing crypto these other trafi players these other Banks they're not going to not Embrace crypto because they're going to lose out if they do that so I think they just want more time because it's caught them off guard obviously still because they're so late to the game uh well they probably feel like they're so late to the game and they want to get more involved there but anyway enough of my tinf fall hack conspiracies once again congrats to puffer on the raise and obviously congrats to nebra as well for their raise there I'm very very proud to be part of puffer as an adviser they're a

great team love chatting to them love working with them uh but yeah anyway you can go check out more information about this I'll link in the YouTube description below for you to do so all right so Kraken has introduced something called the Kraken wallet which seems to be a direct competitor to coinbase wallet so this is a wallet that allows you to manage multiple wallets has multi-chain support out of the box manage your nfts and def5 positions ID privacy and encryption and no client tracking which is a really cool addition here I don't know if coinbase wallet has that no client side tracking obviously that is really important for the Privacy contest of folks out uh out there and obviously I think a lot of us are privacy conscious given that we're in crypto here but yeah as I said this seems to be like a direct competitor to

coinbase wallet just like how Kraken was talking about doing an L2 that would be a direct competitor to Bas and you know I think Kraken has lagged quite a bit on coinbase for a little while now but it seems like they're ramping up their efforts here you know with the release of this new wallet I'm sure they're going to be doing their own L2 at some point they're going to want to kind of release that they're going to want want to uh uh direct their users towards that so I'm keeping a close eye on Kraken here and honestly I'm rooting for them too because in the US right now there isn't really that many big exchanges I mean you have coinbase obviously you have Kraken Gemini is kind of small and there's like some sputtering elsewhere but think about the fact think about the fact that binance us basically had to

shut down uh you know FTX blew up right and FTX us went along with it so there really isn't that many options and this is what I was going back to saying before about like these tradire institutions they see that there's not many options and they're like well we can be the ones that offer these things and I look at that and I kind of find that both bullish and bearish bullish from a bringing more people into the ecosystem perspective but bearish from like an innovation perspective I don't expect these older tradire institutions these 100y old Banks I don't expect them to do much Innovation here I expect them to do what they used to which is basically offering these products to to customers to buy and sell but they're not going to innovate on the onchain side of things like I I don't I I don't

really know like I can't imagine a world where these Banks like most of them at least launch their own l2s right or launch their own wallets or anything like that uh they already have their own apps which basically act like a wallet but it's going to be very very simple and it's going to be very very centralized it's not going to you're not going to be able to like self- custody your assets inside like the Black Rock Mobile Wallet app sort of thing right or the insert Bank name here on Mobile Wallet app so that's why I'm rooting for these like Crypton native centralized companies to uh compete with each other other and to grow together and I I really want Kraken to be that kind of big competition for coinbase because right now it doesn't seem like they are it just seems like coinbase is

dominating it seems like coinbase has it's not a monopoly but they have like a huge market share and there's nothing wrong with coinbase I just believe that competition breeds Innovation and without competition we have stagnation and I really don't want to see the space just taken over by these tradire institutions because they're not going to innovate like trust me guys they're not going to innovate no not they can't even move nearly as fast as any of these companies can so I believe from that perspective I'm really glad glad to see Kraken uh doing more here and and you know if you want to check out Kraken wallet you can I'll link it in the YouTube description below there's a link here for you to go download it and basically there is also a bunch of or two I guess like jobs as well for an

engineering manager and a senior software engineer if that is up your alley there but anyway as I said I'll link this in the YouTube description below for you to go check out all right so speaking of chains and l2s and everything in between worldcoin has announced World chain which is a they're calling a new blockchain designed for humans now I know there's been a lot of controversy around worldcoin generally I'm not really going to get into that today because I don't think it's relevant what I do think is relevant is that they've launched their own Standalone chain after being on op mainnet so for those of you who don't know worldcoin has existed on the op mainnet L2 for a while now basically since they they started being on on chain here now they're basically pivoted away from that and launching their own

chain but they're not leaving the op system so they're basically launching their own chain as part of the super chain based on the op stack and they join a bunch of the other super chains sorry a bunch of the other op stack chains such as bass such as monad such as Zora so they're definitely still keeping it in the family so to speak yeah but obviously they feel like they need to have their own L2 for a bunch of different reasons you know more kind of like control more scalability uh maybe not control but like more flexibility of what they can do and and and basically what they can do with their own chain and innovate there but also from like a profitability perspective too it makes sense for them to launch their own chain and then keep all of the uh I guess like

Revenue uh within their own ecosystem there which I expect to be a trend going forward you know people have been kind of making this argument for years now where they basically said okay well you know we don't think there's going to be like millions of rollups right there's not going to be like millions of chains out there but at the same time I've come to the conclusion that we may get to that world where there's like potentially millions of rollups but they're going to be part of like these super chains right they're not just going to be Standalone chains and they're not going to be expensive chains to run either so if you actually go way back to the original kind of Cosmos Vision it was the vision of having these individual kind of app chains that would all connect to each other via IBC but

essentially where I think Cosmos went wrong with this was that they forced the app chains to basically be their own Sovereign chains they had to issue their own token to boot trap their own validator set in order to create their own kind of security and then later they said oh we would do this IBC thing we will do this shared security thing uh and then it all be well and good but they took way too long to do that they basically fragmented and fractured their entire ecosystem by trying to do that and I think that that that Vision has been materialized in a much better way on ethereum with the rollup Centric road map where essentially we're going to I believe like if I'm if I'm looking 10 15 years out this is the world that I see I see maybe not Millions at that point but

like lot lots and lots of different rollups and I see them and al2s generally and I see them all talking to each other and all being part of these different kind of like super chains or the the these kind of super chain like a handful of super chains but they're all going to be talking to each other they're all going to be interoperating with each other via things like shared sequencing in the AG layer and so on and so forth so essentially even though we're going to have you know tens of thousands hundreds of thousands millions of different kind of roll up app chains or roll app chains or whatever you want to call them it's all still going to feel like one whole uh it's still going to feel like you're on one layer so to speak because it's all going to be interop interoperable with each other so

it's going to be akin to what we see with the internet today maybe this isn't the best analogy but I think it's something that maybe resonates with people so the internet is that you know one interoperability layer you can call it a you can call um or you can say that it's inability layer and then you have like millions of websites that all exist on that so you don't need to for example download a new web browser every time you go to a new website right the web browser allows to go to any website that you want uh you don't need to download uh a new kind of like uh protocol or you don't need to like change change from like tcpip to something else whenever you want to go on a new website it all just works seamlessly in the background all of that kind of stuff is just

happening in the background and completely abstracted away from you I remember there's this kind of GitHub page that explains to you what happens when you press like a key on a keyboard and how much stuff happens in the background that's what's happening today in crypto and in technology generally and it's what's going to continue to happen in crypto which going to exract away a lot of this stuff and it's all just going to feel like one layer but there's just going to be millions of these different rollup chains that all inherit ethereum security that all are part of the ethereum ecosystem and they're all a part of the ethereum orbit which basically means ethereum is the deao new internet essentially the financial internet which we haven't had before as I've explained before we haven't had a way to or protocol to transfer value until Bitcoin came along

and then other chains after Bitcoin and then eventually ethereum and that is like the native or I guess like the way to send value over the Internet uh without intermediaries you know in a decentralized way that is really the ultimate value prop there so that's what I imagine 10 to 15 years out is just like we have a lot of different like app chains but they're all interoperable so there's no fragmentation it doesn't feel like that and we basically funny enough implement the original Cosmos Vision just in a much better way where essentially we have our money which is eth right we have our story of value which is e we have our collateral we have our staking asset we have the the shared security which is not only ethereum uh not only these rollups posting their data and proofs to ethereum L1 but also reaking right like

so um Ian da for example have sking LDA if you're not a rollup if you're just an L2 we have that we have interoperability vers via the AG layer via Shar sequencing via shed proving as well as I just talked about with nebra that's one thing I didn't mention with nebra is that it actually enables interoperability as well so there's just all this stuff coming and all this stuff happening uh that's going to look very very seamless over the next few years you're not even going to need to be to change uh your chain on your wallet or anything like that all that's going to be gone it's just going to feel like one holistic ethereum uh to the end user there but I guess that was a little bit of a tangent but more of a I guess broader explanation of what I view the

kind of l2s becoming over time here but you can go check out what world chain is going to be in particular and what their goals are for it uh and I'll link this in the YouTube description below for you to do so all right I just wanted to give a really big shout out here to this thing called crypto the game Anon Island now I know nothing about this game in general uh so I can't really speak to it right now uh someone posted this in the daily go Discord Channel I just thought I wanted to give a shout out here so essentially the I guess people who won this game won uh 71.8 eth and they donated all of that to the free perv and storm uh fund for Alexi perv and Roman storm their legal defense fund this is just so Chad here

guys I mean like 71.8 e is what how how much at today's price of 3,000 eth uh I'm just working that out here that's that's $215,000 going towards this legal defense fund now of course it doesn't cover all the expenses as you can see here the legal expenses for Roman and Alexi are a minimum of $100,000 per month which is just insane and the last two weeks we're $480,000 due to the trials and motions filed in Roman's case that's there's 300K in uh the the multisig to cover this right now which is just not enough uh that's crazy guys like these legal costs are ridiculous and it's so crazy when it's like the government versing you because the government just has unlimited money so you're the one that's really losing at

the end of the day even if you win the case you still lose like that's how disgusting this is ah God I could rant about this for a very long time but it's not fair it's not Justice especially when it's a case like this but I just wanted to shout out to the winners of crypto the game here which is uh Eva bin uh David Phelps here and yeah I think uh yeah and all the crypto the game uh jury voters who helped to make this happen here but as I said I don't really know anything about this in particular so I'm not endorsing it or anything like that but I just wanted to point out that the there was a donation made to this defense fund so thank you to the people for that made that donation all right so I should have talked about this maybe at the beginning

of the episode but I think it's relevant here because it's going to run into what I'm going to talk about next but I just wanted to point out that eifi has now flipped binance in the staking rankings here so you can see the ethery has uh 1, 76,000 e staked whereas binance has a, 74,000 e staked and ethery has just been an absolute Rampage lately guys or for the last 6 months really and shows a masterclass in how to run an effective incentive campaign as I said on my cast here and they're on track to flip Kiln which actually they may have already flipped Kiln here because I don't think this dashboard is tracking a bunch of eth so they only need an extra I guess like what is it 50,000 I'm doing my mouth correctly yeah 50,000 e eia in order to F flip Kiln and become the top

three uh staking protocol behind just ligher and coinbase now obviously to catch coinbase and to catch Lio is a very uphill battle I don't think I don't know if they'll get there but it's great to see that this protocol didn't even exist really like a year ago essentially and really over the last 6 months has grown to become number three across the board here now I should disclose that I'm an adviser to ethery um there but I'm not trying to pump ethery up or anything like that and I'm not saying to go buy the token or anything of course but what I'm just pointing out is the fact that incentives work guys and this is something that I've been hopping on about for years is that once we had more competition in the staking space once we had incentives once we had direct and indirect vampire attacks on Lio and I

guess like on coinbase 2 we would see more competition and more growth of these other protocols which is Illustrated here on this dashboard so you can go check out this dashboard for yourself which I'll link in the YouTube description below now staying on the staking topic there was something that has been teased over last few days by zerox Macky who is famous for working with sushi back in the day you may remember him from that time back in kind of defi summer there but he's been around for quite a while an OG ethereum here but he's been talking about something called heroglyph or hieroglyph or what however you want to say I've heard some people say it is hieroglyph or heroglyph Y there's not much information about this yet there is a Twitter account you can go follow which I'll link in the YouTube description

below and there's also a white paper but this white paper is like redacted in some parts so you kind of have to guess what this is but I think I've got a pretty good understanding of what this is uh so essentially what it seems to be is ordinals inside ethereum graffiti now for those of you who don't know there is a graffiti field on every validator you can put whatever you want there so it's a 32 byte field you can put like people put like messages on there so for example my Rocka pool validators have eth's money as its message on there but you can put whatever you want as long as it fits into 32 bytes now I believe that the point of what is being built here with heroglyph is to essentially issue these kind of ordinals or I guess like issue um inscription like things or

token like things within that 32 by kind of um graffiti there and then do that in a way where essentially you create a spec a speculation around it in order to incentivize more solo validators to join the network because from my understanding of this white paper the this heroglyph would o protocol would only apply to Solo validators or at least they're going to try and make it apply to only solo validators now I don't believe it exists uh it it it will apply to existing solo validators out of the gate the whole point is to essentially get more solo validators online or more solo stakers online so that uh this is basically an incentive mechanism for that now you may be wondering okay well how are they going to identify who's a solo validator versus who is not and this is one of the

open questions I think that this is one of the things that makes this not like a perfect solution or anything like that but something different that I think is probably worth experimenting with but the two main concern the the two main ways I guess uh sorry the the number one way you can actually have not certainty but like relative certainty that that one of the validators coming online or multiple or the validator coming online is not part of a staking pool is that it's withdrawal credentials uh is not a smart contract now of course there is an issue with this in that anyone who's got a safe multisig as their withdrawal credentials uh is even as a solo Staker is not going to be eligible because that is a smart contract so it's only applying to people who have like EAS normal ethereum accounts as their

withdrawal address which isn't great as I said this is not a perfect solution here but it is basically near impossible or impossible to accurately identify solo stakers uh because if there is enough money to be made it's going to be games and there's no way uh like to to I guess like uh delineate between these things there are different things you can try to try and like filter out things for the most part but is really really difficult to identify solo stakers and solo validators especially when there's kind of incentives involved uh because there a ways to game it and I don't think that uh the creators of this or anyone involved with this is going to be saying that there's not ways to game it or saying that it's a perfect solution but they're just trying from

from my uh reading of it they're just trying to incentivize more solo validators on the network by using speculation by using I guess like maybe not meme coins but by using kind of like speculative Vehicles so to speak economic incentives as you as we call it if we have like a suit on it's economic incentives if we're in our casual close it's D gen speculative stuff uh but that's my understanding now as I said a lot of this white paper is blacked out right now but I believe the full white paper is going to be released today or tomorrow uh but I'll keep you guys updated on this project generally there but I think on that note that's going to be it for today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give it a thumbs up subscribe to

newsletter join the Discord Channel and I'll catch you all tomorrow thanks everyone