Eggg yolk, what’s cracking with my favorite chaps, the chico army & if you're new, and
you wanna join that crew, subscribe, and drop the title of viewer of the tube.
My name is Tyler the host of the crypto channel whose content, is little too metal for most,
kind of like this guys bday rendition.
Well, BITCOIN is holding its ground within the range.
10k to 12k, working our way towards the middle of it, and possibly revisiting the top of
this range.
Back in late july and august, when we were bouncing around the top of the range, around
12k….altcoins were oh so bullish….if we are able to slowly push back to this upper
level & even break 12k once again, I foresee a similar thing going down…..
Because you shouldn’t fight the trend, and the trend has been pushing right back up for
what crypto movements are currently tied to.
The stonk market.
DowJones, right back up after a crushing september...as you can see the peak was just over a month
ago, just above 29000 points...I don’t doubt for one second this month we will creep right
back up to that level, and possibly beyond.
That is good for crypto, as down with the stonks would mean down for us too unfortunately.
Plus Bitcoin and crypto got some of the worst news possible, and shook it off.
BitMEX founder, Arthur Hayes and the other founders were charged with major financial
crimes and the future of the derivatives exchange is really up in the air.
That news would have come out in 2017...it would have crushed BTC.
So, don’t count out another mini run coming this month….and if it does happen, it’s
not going to look at all like what we just experienced this summer.
There are many other factors at play, right in the spotlight & much of it boils down to
what’s going on with Ethereum, in my personal opinion.
DeFi interest was surging during the summer...from July to August, TVL total value locked up
in DeFi jumped from basically 2 billion to 4 billion.
Then from August to September, it jumped from 4 to almost 10 billion.
And from September to today, even though prices have been getting crushed, TVL still pushed
up...it dipped on September 5th to the low of 7.7 billion, but today over 10.8 billion.
DeFi has been trending monthly, setting higher highs in TVL for nearly the entire year...and
that is all going on...the ethereum mainchain.
Which clogged her right up, creating a pain to get transactions to go through, and putting
transactions fees to levels never seen.
Now as you can see from the average transaction fee for Ethereum in it’s history, it had
been 2 years since fees got to ridiculous levels, the “crypto kitty” days.
2 years is a long time, people forget, and the newbies didn’t even know this could
happen.
This issue wasn’t really an issue until the summer of 2020 began.
Now the issue is known, and in the spotlight.
People understand that DeFi & ethereum as a whole, can’t do what it’s supposed to
do, with the current base layer design.
Decrypt covered this topic from none other than Vitalik Buterin just 4 days ago.
Article title “Vitalik Buterin: Ethereum's 'Nearly Unusable' for Many App Types”...and
the article references this post, from Vitalik in an ethereum developer thread.
Vitalik says “The L1 of Ethereum is nearly unusable for many classes of applications,
and there’s no non-L2 path that can get us to scalability in the short-to-medium term”
He references he paid over 17 dollars in fees to make a bet on Augur.
Then below...it’s all about what, what’s mentioned 8 times by ole vitalik in the next
paragraph???
Like I mentioned in the past, one of the kickers for the next RUN.
Layer 2, L2.
So what is Vitalik’s choice for “Layer 2”??
Is it ethereum plasma?
Is it OMG Network?
Well in that same thread below, he talks on this….The challenge with ZK rollups is that
at present they’re not capable of supporting general-purpose EVM computation “so at present
we have to work with the optimistic variety.
And the optimistic constructions are not that bad IMO; they suffer from some of the drawbacks
of plasma, but not all; in particular, unlike plasma, optimistic rollups are easily extensible
to generic EVM applications, which makes them much more suited to “scaling ethereum”
generally, whereas plasma is only effective for payments, DEX and a few other use cases.
Obviously he likes the optimistic rollups, and that is confirmed further, as Vitalik
yesterday on Twitter put out a graphic scaling roadmap, which explicitly mentions them, in
the map and tweets multiple times.
But...when are they coming, as you can see the roadmap of course has no dates.
Well in the tweet thread he explains when rollups, could go live??
He puts out the original Eth roadmap, phase 0 to 2.
Phase 0, proof of stake, phase 1 sharding of data, phase 2 sharding of transactions.
And below he says “That said, rollups are already here or coming soon even before sharding”
Hmmm, they are here or coming soon?
Vitalik, come on bud, we know roll ups aren’t officially here yet….that is why, no one
can share an actual date of when they will go live...don’t get me wrong, I’m optimistic
about optimism, but the reality of the situation is they are not even close to ready for general
purpose smart contract deployment.
Now, one of the leaders in this Optimism space is Optimism PBC who is working on their own
rollup chain, called optimistic ethereum.
I covered last week, that they would be 1st be partnering with Synthetix, and pushing
them onto the testnet.
Well some good info has come out on this, so we have to cover it.
Kain Warwick, founder of synthetix tweeted this on October 1st “Optimistic Ethereum
will be the DeFi chain over the next 12-24 months.
Nothing is even close.
Mainnet is coming and it’s going to melt your f’ning faces.
One of their head engineers should have a sneak peak for you all very soon…
Sounds good right?
Well always Twitter competition drama...Steven Goldfeder retweeted this and said “Finally
I agree with Kain.
Nobody is close to Optimism.
Only they have: No Fraud Proofs, Fully trusted Sequencer, No benchmarks & No protocol spec.
Join Kain and build on Optimism today!
Oh wait...you can't because they don't support contract deployment.
Ouch!
Then below, Chainlink god said this “Seeing Kain freak out over this post and throw ad
hominem attacks, rather than disputing is pretty bizarre!
What gives, can we not have an open discussion regarding the fact Optimism is still missing
key components required for a secure ORU?
The snarkiness is a given in crypto.
So chainlink god, you gotta know this somehow relates back to that stanky lank, and it does
as Steven Goldfeder is an IC3 post doctorate for cornell tech, the cornell connected to
chainlink.
They are saying that optimism isn’t ready…
As they have an optimisim competitor, Steven is also the co-founder of offchain labs, who
have created arbitrum, and the arbitrum rollup & going back to Steven’s tweet thread, below
we can see he says “We launched a version of Arbitrum with fraud proofs 7 months ago.We
released a new version a few weeks back that's feature complete with fraud proofs, arbitrary
contract deployment and lots of other goodies.
Try it out here http://developer.offchainlabs.com.
Testnet V2 this month.
Soo to me regarding rollup’s, arbitrum vs optimism.
Arbitrum takes the cake.
They have been in testnet v1 already for some time, as we can see from this medium post
written by Steven, since February of this year, 8 months.
Optimism, and their testnet just released, with a cut off on who can participate, just
1 player, synthetix.
Arbitrum is open for anyone to dive into and deploy.
But you guys, this is not the end all answer, rollups, it’s has to be a combination of
everything, rollups, sidechains, statechannels, sharding.
Offchain lab’s Steven even know this.
In his February testnet medium post he said this regarding rollups “Rollup is awesome
— particularly for “open world” smart contracts which don’t have a fixed set of
players.
But, it turns out that for a large class of contracts, we can move even more off-chain,
achieving greater scalability and even lower costs.
We’ve written a lot about Arbitrum Sidechains and Channels, and plan to launch them later
this year.
Rollups, are good for erc20 tokens, and that standards based smart contracts.
But it isn’t good for things like NFTs, fixed set of players, identities, fixed set
of players, which means gaming and DAOs, fixed set of players.
So, I know everyone wants xdai to win the Reddit scaling competition, and I think they
should, proving their mainnet ready today by already monetizing the test tokens, moons
& bricks.
But it’s highly possible Arbitrum takes it, as it’s highly suited when mainnet ready,
for something like reddit’s community tokens, which are erc20, supporting the full basket
of smart contracts related to that token standard.
And diving into Arbitrum’s actual reddit submission, they go deeper into why they are
the chosen “rollup” solution….user hka lodner who posted the submission says this
in response to a user saying “Wasn't there a successful test on L2 with SNX using the
OVM?”
“The SNX demo was awesome, but it only used certain centralized components of the OVM
and was not actually using a rollup whereas Arbitrum is a fully decentralized optimistic
rollup implementation.
We're still on testnet so not quite ready for primetime, but all the components are
in place for anyone to be able to launch their own secure decentralized optimistic rollup
chain using Arbitrum.
So he says, not quite ready for primetime, arbitrum, which is farther along than optimistic
ethereum.
Which means not ready to win the competition, which needs to be on a mainnet...
So...
IDK, what the delay from Reddit was all about, they last posted they are still finalizing
the winner, and need more time to look through the solutions.
Are they waiting for something like optimism to be ready??
I’ve gone through the submissions in this video, give it a watch if you haven’t by
clicking the tag above...from that video only ones who could be ready today, in my opinion,
are xDai & Matic both sidechains & now I’ve learned Arbitrum with their rollup could be
ready here soon.
But remember politics, and OMG and plasma could slide in there with it’s connections
to the ethereum foundation.
Cheers I’ll see you next time!