People want to use Ethereum... they want to participate in the trading of cryptos.
The minting, buying and trading of NFTs….but many can’t as it’s high fees are not easing
up one bit!
Day after day, month after month...they have been rising!
What is a person to do?
Well find out in about 10 minutes...because it’s time for Chico Crypto!
Ethereum gas fees...They were sitting around 20 gwei in June..but just a few months later,
they have exploded by 600 percent.
6xing up to 120 gwei.If you don’t understand gwei... let’s just look at that translated
over into USD and the costs for different DeFi actions on Ethereum.
Swaps are between 100 to 180 dollars...supplying liquidity is between 120 to over 300 dollars
& removing liquidity is between 107 to 167 dollars.
Now, unless you are making a trade in the 10s of thousands of dollars, or adding or
removing huge amounts of liquidity...it’s not worth it to transact on the mainnet of
Ethereum…
So what can be done about this?
How can you still be involved with defi and the crypto markets, without paying bookoo
bucks on gas!?
Well you really have 2 options..you can try Ethereum layer 2 or you can use a separate
chain!
And that is exactly what we are going to cover today.
A production and user ready Ethereum Layer 2 and separate chains who are promoting themselves
as EVM compatible...which is the best?
Who is the most ready???
Soooo Ethereum Layer 2...production and user ready..who could that be?
Well of course it's Arbitrum and the Arbitrum ONE rollup!
Last week I predicted that the user mainnet would be opened by the end of the month, and
that was true as they opened the mainnet to the public yesterday August 31st!
And applications were ready to start being utilized on the rollup.
The swapping and liquidity protocol, Balancer announced they were live on Day 1 & switching
over to Arbitrum on Balancer is as easy as clicking the network in the top left corner,
and choosing Arbitrum!
But things will get even more interesting for Ethereum layer 2... very soon!
An @Litocoen on twitter tweeted “watch this and tell me you’re not bullish on ETH.
Polygon to Optimism in 2 minutes and $0.10 transaction costs.
New users won’t even need to ever touch Ethereum mainnet anymore!
Arbitrum next...with a video of the HOP protocol, allowing this transfer between L2s.
This is BIG for the world of Ethereum L2s.
As the gas fees for Ethereum on the L1 mainnet, aren’t going down in the short term to mid
term.
Now user’s won’t have to even deal with them, being able to HOP from l2 to l2 in a
cheap and efficient manner!
But now let’s talk about the other chains!
Not using Ethereum or a layer that is secured by it.
There are more than a few out there...but we are going to talk about the one’s on
the top of everyone’s mind.
Cardano, Solana Polkadot & Avalanche!!
Lets begin with Cardelayno as supposedly they are not delaying any longer.
In less than 2 weeks, September 12th..Smart Contracts are coming!!
The Alonzo hardfork will take place on the mainnet, and people are getting really PUMPED
up as they think Cardano is going to steal a lot of thunder from Ethereum….
But in my opinion...this one is a buy the rumor, sell the news!!
People have already been buying the rumor...since the beginning of August, the price has exploded
from $1.31 cents to as of yesterday $2.79...just a 112 percent rally in a month!
There may be one more run up of the Cardano price before September 12th...getting back
close to the $3 dollar level, maybe a little higher...but on the day, I believe Cardano
will dump…
As what’s getting launched, is not what people expect!!
People are expecting yes of course smart contracts but Ethereum compatibility, and yes smart
contracts are coming although in a brand new language developers aren’t used to...or
in a super basic form, but Ethereum compatibility...that isn’t coming September 12th.
So what could be coming September 12th?
Well according to the Cardano Plutus roadmap, with the Alonzo hardfork, Plutus smart contracts
will be implemented!
Now as we can see from Cardano documentation on Plutus it says “The Plutus Platform is
the smart contract platform of the Cardano blockchain.
Plutus contracts consist of pieces that run on the blockchain (on-chain code) and pieces
that run on a user’s machine (off-chain or client code).
Both on-chain and off-chain code is written in Haskell, and Plutus smart contracts are
Haskell programs.
This means, you have to develop the contracts with Haskell.
Any Ethereum or smart contract developer, isn’t going to rewrite all of their dapps
smart contracts into an obscure language that is extremely tough to learn.
Haskell is a launguare, that isn’t only for smart contracts and blockchain, like Solidity
from Ethereum is.
It’s used out in the normal programming world.
And as of 2020 it’s ranked last...dropping in popularity each year since 2012!
People don’t like developing with Haskell, that isn’t any new news!
And that’s even showing it’s face in the Cardano forums.
A person posted a thread titled “Understanding Plutus: Forced to learn Haskell from scratch
or wait for KEVM?” and they said “It is very hard for them to follow the Plutus code.Unlike
Solidity...and many people agree with the poster.
Plutus and Haskell is though to learn
So don’t think for a second, Ethereum projects are their developers will want to learn Haskell...they
won’t!
Although many people will say, what about the erc20 converter!!
That is going to allow ethereum projects to convert over to Cardano...and it’s getting
it’s launch too!
Yeah, the ERC20 converter is coming to the testnet next week!!
It’s being launched for testing alongside the Plutus smart contracts on the mainnet...but
this isn’t a full on converter, that will convert everything like many think.
This is just a bridge for tokens.
Smart contracts are not going to be converted through this.
From a post on the Cardano subreddit about erc20 converter usefulness and security...a
person commented “Contracts aren’t converted.
Contracts will need to be rewritten in Plutus or executed on an EVM, which I believe Cardano
is building as a sidechain”
Soo, it’s most likely not going to see much use...as many popular applications on Ethereum
don't have plans to develop with Haskell, thus there won’t be any well known DeFi
applications ready to launch on Cardano where you can use converted tokens!!
Cardano needs EVM compatibility, which will come in the form of a sidechain….and that
isn’t going to be ready September 12th!
But some other chains are ready to host Ethereum dapps and beyond.
What about Polkadot, it’s canary network Kusama and a certain parachain which we will
get into in a second...but first the sponsor for this video can too, Energi, and like always
the full details of our agreement can be found in the description!
Yeah, Energi, has been building with Ethereum compatibility in mind, since the beginning!
They recently went live with their Energi Bridge, currently supporting all the assets
on Ethereum, with plans to include other chains in the near future.
It’s super easy to use and will be a familiar experience with the MetaMask integration...you
can even use your same ETH wallet address
The bridge is huge news for Energi and will help accelerate the adoption of their DEX
EnergiSwap, a familiar experience if you are used to something like Uniswap.
Users are already enjoying an unrivaled trading experience thru Energi’s top-level customer
support system, vast selection of token assets and industry leading protection against scammers,
hackers and other nefarious actors within the space.
Sure, other side chains like Polygon, BSC and Avalanche can claim cheap fees and lightning
fast transactions, but that’s old news…
EneriSwap transactions cost less than a penny, but they include additional benefits to the
user these other projects are simply not equipped to provide…
Like 24 hour a day, 7 days a week customer support for any issue.
And most importantly, their industry leading user protections like their in-house cybersecurity
expert Energi Defense Team and Energi Bureau of Investigations that actively protect user
funds and monitor the Energi infrastructure..
Let’s face it… having a large marketcap and heavy trading volume doesn’t mean a
platform is secure… take a look at BSC which regularly falls victim to flash loans and
other attacks.
And more recently giants like Poly Network just went through the largest hack in history
stealing over $600 million dollars in tokens… if Energi was faced with a hack like that
of Poly Network they could freeze the attackers assets within the 3.5 day withdrawal window,
effectively disabling the scammers funds, essentially eliminating the possibility of
crime on Energi.
No other blockchain.
No other DEX can provide that level of customer protection and peace of mind.
To help you get ahead of the curve let’s equip you with a quick walkthrough on how
to get set up with Energi and how to make a trade on EnergiSwap.
First thing you need to do is add the Energi Mainnet to your MetaMask… and this couldn’t
be easier… click the link found in the description and when the page opens, simply click the
green Configure Now button... then confirm in your MetaMask
To bridge your funds to the Energi blockchain we’ll use their newly launched Energi Bridge.
Simply connect your MetaMask, while on the Ethereum Mainnet, enter the amount of ETH,
or other approved token you want to bridge, click transfer, confirm in your MetaMask and
then after a small wait your funds will be ready to use.
Now that we have some ETH on the Energi Mainnet we can use the EnergiSwap DEX… and this
will feel like using UniSwap minus the expensive fees… simply choose the tokens you want
to swap from the list of 180 tokens and growing….
Here we’re taking our newly bridged ETH and picking up some NRG and will conduct our
trade like normal.
It’s that simple
So users looking for a familiar DeFi experience...which is safe and friendly...the Energi ecosystem
and the EnergiSwap DEX as a solid pick.
Word on the street is they will soon be launching a juicing liquidity farming program… along
with another innovation from the team… a Decentralized Referral Program.
So if that peaks your interest...make sure to stay tuned, all links for Energy are below!!
Now back to Polkadot, Kusama, and a certain parachain which is going to allow EVM compatibility
on these networks...in a BIG way.
It’s ready to go, and porting over contracts to the parachain will be simple for Ethereum
developers!
Sooo let’s get right into it.
Polkadot and Kusama were built for Ethereum compatibility..unlike Cardano.
Even as far back as October 2019..Gavin Wood, the founder of Polkadot has tweeted about
the synergies between the 2 and how they would interporeate with each other One of the major
pieces was called the Substrate EVM and the blog post from Gavin said this about it “This
is a Substrate SRML module that introduces an Ethereum-compatible execution environment
“natively” into Substrate.
Essentially, this allows your Substrate chain to host the vast majority of the Ethereum
state transition function.
Existing Solidity/EVM code can be deployed into this environment.”
Now since October of 2019.
This compatibility layer has been given an official name.
It’s now called Frontier and the documentation is written and live...meaning this is ready
to go!
Who built Frontier!?
Well of course Gavin, and the Polkadot team...but also a certain Parachain.
Moonbeam.
June of 2020, they put out a blog...and in it said “After we announced our project,
Parity reached out to us to let us know about Frontier, a project that they are working
on to build upon the EVM pallet and provide improved Substrate Ethereum support.
We have agreed to join forces with Parity and work together on the same repo rather
than pursuing independent efforts”
And shiznit’s about to get real regarding deployment on Moonbeam.
Donnie Big Bags tweeting about Sushi, getting ready to deploy, with screen grabs of Sushi
team members, confirming it’s going to happen soon!
But it’s not only Sushi...it’s a whole heck of lot more!!
Mr. Big Bags also tweeted “Next week the team will begin announcing projects and bridges
going live.These create liquidity pools and force increased $MOVR demand.
Also 10% of supply reserved for liquidity bootstrapping, incentivising #DeFi with liquidity
rewards”
And he provides the proof of the team saying dapps and bridges are coming.
Donnie projects bridges to ETH, BSC, Solana and Polygon and the dapps projected include
of course Sushi, but also Balancer, Karura, and Dodo!
So, all I have to say about this is...Cardano will not be getting deployments like that.
Moonriver, Kusama, and Polkadot, have been building with the EVM in mind.
And that’s the winning strategy.
Cheers I’ll see you next time!