Bankless - ROLLUP: 3rd Week of October

Starting point is 00:00:00 This episode of Bankless is brought to you by YERN. YERN is a yield farming money robot to do the yield farming in DFI so you don't have to. YERN has various products like VALTS or Earn, where in VALTS you can deposit your preferred defy token, and DFI experts have written strategies for this token that you deposit to go and find the yield automatically in DFI. Earn is that same thing but with stable coins, where the earn system will move your stable coins, around from protocol to protocol to seek yield from whatever defy protocol is offering the most amount of yield at that particular time. Check them out at y'earn.finance. A fantastic tool to help

Starting point is 00:00:41 you live a bankless life comes from Monolith. Monolith is a smart contract wallet on Ethereum, but it comes linked with a Visa crypto card that links right into the dye in your smart contract wallet. So it's really spanning both worlds using smart contract wallets on Ethereum and also a visa card to purchase groceries or live your life. And so it's a great way to live a bankless life without having to give up all the normal things that you would need to purchase to live that life. Check them out at monolith.xyz and get your monolith visa card sent to you today. Zapper is a tool I've been using to help me track my portfolio and all of my wallets across defy. You can plug in your addresses into the zapper.fI dashboard and Zapper will give you a report as to

Starting point is 00:01:30 all of the assets that you own and where you've placed them in defy. You can also invest right through the Zapper portal. So if you just don't want to go to all the different URLs for all your favorite preferred defy protocols in order to stick your assets inside of them, you can just go to Zapper.fI and click on where you want your assets to go. You can also add multiple wallets in case you use multiple wallets and you can add them all into one seamless portfolio view by adding multiple wallets in Zapper. Check them out at zapper.com. Unstoppable domains is where we get human, readable, blockchain domain names that are also completely censorship resistant. One of the really important features about unstoppable domains is that you can

Starting point is 00:02:11 set up a website that has a domain that any nation state cannot take down. Really important for being a self-sovereign individual in this world. Additionally, what's also insanely cool about Unstoppable domains is that Bitcoiners or any other blockchain can use Unstoppable Domains to make their Bitcoin address human readable, right? So no longer is this just technology built on Ethereum. Now Unstoppable Domains brings this to all other blockchain. So you can tell your Bitcoin or friend to send you money to David Hoffman.eath or your name here.crypto. Check them out at Unstoppabledomains.com. All right. Welcome everyone to the weekly roll-up. This is our second week.

Starting point is 00:02:56 weekly roll up, David. I'm super excited. This is the third roll-up of October. Happy Friday morning to you guys who are looking on YouTube, watching us on YouTube and also on the live stream. David, how are you doing? Absolutely fantastic. Ready to run through some of the news that's happened in the last week, injecting it straight into your brain and a nice little package all rolled up for you. Perfect. Yeah, that's exactly what we're doing in this segment. Comes out Friday morning hot. And what we do is we dedicate five minutes to five topics. We cover the market. Number one, releases, news, takes, and then we end with what we are excited about and what's happening in general. So five topics, five minutes each. We get it in

Starting point is 00:03:38 your head in 25 minutes. The schedule is every Friday. So every Friday morning, both on YouTube, where you can see the visuals that accompany this and also the podcast, David. You ready to get started, man? Let's round them up. We're rolling it up. All right. We're doing it. Round them up and roll them up. We are starting with the market. What is the market saying? I feel like it might be good things, David. Shall we start with Bitcoin? We have five minutes. Yeah, the market is saying we're going up and to the right. At the time of speaking, Bitcoin is $13,000, $13,200, which is a higher number than what it was last week. And this has just been on the heels of a bunch of bullish news, some of which we will talk about, and some of which is just like a lot of people in the legacy world really seem

Starting point is 00:04:25 to be figuring out Bitcoin, right? This is a hammer I've been beating or a drum I've been beating for a while. People are learning how to resonate with Bitcoin's value proposition and understanding Bitcoin as a whole is bullish for Bitcoin. Yeah, this is a move that is actually highest year to date as well. So we're highest year to date for Bitcoin. Pretty impressive. And it felt like, you know, sometimes people ask about price move, like, why? Why? Why did it happen? And often when I'm asked that, I'm just like, I have no idea. It's crypto. It's sort of a random rock. But random walk. But this felt like it was maybe precipitated by some news, particularly the PayPal news, which I know we're going to get to in a moment. Is that your take as well? Yeah, it is, but also no. PayPal is the news of the week. But Bitcoin's bullish for news other than that, right? There's plenty of other reasons to be bullish. And I think that PayPal is, there's a lot of attention in the media. It's, it's extremely

Starting point is 00:05:25 validating and it's definitely relevant. But, you know, we were going to get to this point, you know, at some point sooner or later. It's just paid with the PayPal news just made that happen sooner. Yeah, got it. Okay. Let's talk of ETH chart too. So ETH is also having a fairly good week. We're at 417. What's your take on ETH price? Yeah, the Twitter and market commentaries from people have been really interesting. As a defy assets and yield farming has kind of of deflated. The narrative was that, you know, defy assets are rotating into Bitcoin. And as defy assets went down, Bitcoin was going up. And this, and this recent move by Ether from like just 390 to 417, where it is today, is a really strong return punch to Bitcoin. If we are

Starting point is 00:06:09 thinking about things in an adversarial way, which we don't necessarily have to. However, when it comes to leading the market, it looks, people were getting ready for Bitcoin to lead the market. but ether, it's hot on its heels, if not keeping up and even going faster. All right. So 417, of course, this is as of Thursday. Things could change by Friday morning when you are listening to this a little bit. But let's talk about some other metrics that are a bit more, I guess, constant, less fleeting. And that is Ethereum is actually seeing an all-time high in active addresses.

Starting point is 00:06:39 So we've talked about before, David, each active address roughly corresponds to not necessarily user, but to like a bank account. an eph address is similar to a bank account. So it could represent a large number of users, large number of capital pools. What does this mean? Total active addresses at all-time high for Ethereum, higher than 2017.

Starting point is 00:07:00 Yeah, this is a really timely piece of news to come out right on the heels of Metamask's 1 million monthly active users that they registered. Check out the state of the nation that we did with Jacob Cantell earlier this week for more news on that. But it just seems to be that like people are learning to use Ethereum. There are reasons to get onto Ethereum. And, you know, like you said, one act, one active address is not necessarily like, you know,

Starting point is 00:07:27 it could be the same owner as another active address. But it does, at the end of the day, it doesn't really matter. Like all time high and active addresses is all time high and active addresses. When we look at Ethereum and when we look at its fundamentals, we look at its economic activity. And active addresses are economic activity. Another indicator of economic activity is the amount of value that the network settles. So these are financial networks. Bitcoin is a financial network.

Starting point is 00:07:53 It primarily just settles Bitcoin, so value denominating Bitcoin. Ethereum can settle value denominated in ether, but also value denominated in other assets as well. And if you convert all the settlement value to dollars, what you get is a pretty impressive pace for Ethereum. So Ethereum is on pace to settle over $1 trillion. dollars worth of value in 2020. That's pretty phenomenal. And it's overtaken Bitcoin in this by a lot. So like its run rate is beating Bitcoin. What does that mean? Yeah, that's exactly what Ethereum is supposed to do. It's supposed to be a host of generalized economic activity. Where Bitcoin is really good at settling Bitcoins, Ethereum is really good at settling everything else.

Starting point is 00:08:43 And I'm not really sure that like, you know, there's a lot of news about crypto, but it's mainly Bitcoin and mainstream. I'm, I'm not sure that like people are learning about Ethereum's capabilities quite yet. And when that wave of people comes, when PayPal leverages stable coins or crypto dollars, not just Bitcoin and ETH in on their platforms, as like remittance payments and cash app also integrates stable coins. Like, there's so much more adoption to be had with like leveraging Ethereum's economic activity as a platform. platform that and the fact that we're already ahead of Bitcoin is insane. I can't imagine where we're going to be when all these companies integrate stable coins. Yeah, Bitcoin is in second place in terms of the value it settles on its network. Pretty impressive for Ethereum. Total value locked. We'll just look at this briefly because we've got to move on. It's up 12.4 billion locked in

Starting point is 00:09:33 D5 protocols. The amount of ETH locked. It's a little bit down, but still we're tracking at about 9 million ether supply locked in D5. So super impressive. David, let's jump to releases. Section two. Yeah, section two. So we've got five minutes for this. What got released last week? Well, obviously the big news is that PayPal is now open to cryptocurrencies, which there's a, there's a lot of takes to be had here. First off, there's a very obvious take that this is awesome and bullish and yay adoption. And that's exactly what the markets are saying. you can now, if you are a merchant that uses PayPal, your customers can pay you in Bitcoin or in Ether, right? We just had a comment from a Bankless Nation member in the Bankless Discord that talked about how grateful he was that he was able to purchase, like the Bankless newsletter with crypto, right?

Starting point is 00:10:26 Because if he didn't have that option, he wouldn't have any other option to purchase it, right? And what PayPal is doing with crypto is it's allowing unbanked people to use their Ethereum bank account, to use their, Bitcoin bank account to pay for things inside of the PayPal network, which is, I mean, that's just really exciting. And it's also extremely legitimizing of Bitcoin and cryptocurrencies at large. I think you're about to give maybe a downside take as well, because that exists as well. So we get adoption. That's a plus. Also, I saw 2021, they're talking about rolling it out in Venmo. Everybody I know, at least my area, they use Venmo all of the time. So this is definitely adoption of, it's not just Bitcoin, it's Bitcoin, Ether, and some other crypto assets as well,

Starting point is 00:11:12 like Bitcoin, Cash, who cares. But that's pretty bullish. But there is a flip side to this in that, what, it's not bankless, right? Yeah, it's a walled garden, right? And so there's also a philosophical question to have here because, like, you can't purchase Bitcoin or Ether with PayPal yet. But, like, even if they can, they don't let you send your received crypto as a merchant or as a customer. They don't let you send your received crypto to your own external wallet, right? And this is exactly what Jake Chavinsky was talking about forever ago when he was on the bankless state of the nation, is that what he is worried about is that regulation is going to put up walled gardens around these entities that can leverage crypto, leverage Bitcoin, leverage Ethereum in their own, like centralized

Starting point is 00:11:57 way, right? And so they have their own internal ledgers, just like Coinbase has their own internal ledgers, but think about Coinbase, except it doesn't let you withdraw your crypto, right? And so you can only send Bitcoin to other PayPal accounts, which is just like the same system that we already have, right? And so, you know, tip of the hat for PayPal for getting this out the door. And I hope they continue to break down those walled gardens. I know that they need to be careful when they put their foot out into some into the unknown with something like this. But if we want to do to like enable a bankless world, we need them to break down those walled gardens and allow us to send Bitcoin and Ether out of their platform.

Starting point is 00:12:35 All right. Well, I have a spicy take on this, but we'll save that for later. Let's talk about other releases. The next is Barnbridge. So what is Barnbridge? Barnbridge is a really interesting protocol that is allowing the stratification of risk across different tranches, right? And so the way this basically works is that there are two or more parties

Starting point is 00:12:55 that have different claims on yield from DFI protocols, specifically with stable coins, right? And so very, very simply the way that this works is you can buy into the senior tranche and get locked in at like 5% interest rate. And then you can get into the junior tranche, which is the tranche that fluctuates, right? So maybe the interest rate in a defy protocol fluctuates from 4% all the way to 9%. Well, if that interest rate fluctuation goes up to 9%, the senior tranche gets the bottom 5%, and then the junior tranche gets like what's left, right? but it also pays in the instance where the interest rate got under under the senior tranche rate at 5% maybe it averaged out at 4% the junior tranche rate actually pays 1%

Starting point is 00:13:42 interest rate to the senior tranche important point is is that it stratifies risk and it tokenizes it and separates it and this is a very legacy money Lego that we now have available on Ethereum very cool and I know defied debt has a tactic a tutorial you can use on bankless YouTube to try that out so check that out if you're looking to learn more. David, we're running a little short on time on releases, but I want to get to the Circle UBI concept. So what is that? That launched this week as well, actually late last week, and people have been going crazy, at least in the DFI sector, lots of DMs like verify me on Circle. UBI. Universal basic income is of course what UBI stands for. What is that?

Starting point is 00:14:24 Yeah, so it's a combination of a decentralized identity system like a bright ID and a token that it has credit, is a credit system as well. I'm actually less familiar with the tokenomics, but it starts off as a decentralized identity system, which is why you saw people on Twitter saying, hey, will you verify me? Hey, will you verify me? Because the only way that decentralized identity works is by a network of interrelated people that can vouch for each other. And then when you get your three people to vouch for you, you get your first initial distribution of circle coin. But it's not like these things aren't. fungible because your circles are different from other people's circles. I don't know much more

Starting point is 00:15:04 about it other than that, but your circles are valued dependent on your network of people, and they're not exactly the same value as what other people's circles are. I know the coin itself inflates at about a 7% issuance rate per year too. So the idea is to have some sort of community based money. The cool thing about this is launched on X-Di, not on the main chain, which I hope we'll get back to. David, we could also talk about yield protocol, which had a cool launch this week. Metamask swaps, of course, will include links to those in the show notes, lots of cool releases to keep up with. But let's get to the news. What's happening in the news this week? Do you want to start with FinCEN? Yeah, FinCEN went after a Bitcoin mixing service.

Starting point is 00:15:47 This was a centralized mixing service that allowed people to mix up their bitcoins for privacy, right? This is very similar to tornado cash, except for the fact that it was done by a centralized company not a protocol right and so this is exactly the same reason why bitmex was such a big deal right the same charge of violating the bank secrecy act like allowing an enabling a centralized entity enabling people to launder money this is what the regulators really don't want and this is also why we defy because this is exactly what tornado cash does but tornado cash is a protocol that you can't stop and coin a ninja or whoever these people are that got snagged you know, we're a centralized company.

Starting point is 00:16:29 Yeah, so it's a $60 million penalty against the developer and owner of Coin Ninja, Larry Dean, Harmon. But I have to wonder, like, are they going to be coming, are they, if they're going to be coming after the protocol devs is something like tornado soon? Or do you think we're immune from that? I suppose that requires somebody like Jake to weigh in. It is concerning, though. It does feel like the nation state, the final boss, as we call it, is kind of. of peering its eye over to what's happening in crypto. I guess we'll have to see how that emerges.

Starting point is 00:17:04 Maybe let's jump to something good on the privacy front, which is shielded Zcash transactions. That hit a high recently, right? Yes, yeah, an all-time high. And that's really important for privacy on Zcash, because if you have, the way the Zcass works is there are two types of transactions. One is just a simple send,

Starting point is 00:17:24 just like a Bitcoin transaction, and one is a shielded transaction, which has certain components of the transaction hidden. And privacy, with the way Zcatch works is these private transactions only work when there are other private transactions to hide amongst, right? You need to hide inside of a crowd of transactions. And what we are seeing with this all-time high in shielded Zcash transactions is we are seeing high liquidity of privacy on Zcash. So Zcatch is finally getting to the point where its product is maturing in a way that allows people to use it in a private manner. Yeah, I love Zcash. God bless Zcash. It does feel at some level that there's sort of a

Starting point is 00:18:02 test net for tech that could be built in Ethereum and even Bitcoin at some level. Like I feel like this on a side chain or this incorporated into Aztec could be super bullish on the Ethereum main chain or in a layer two. Either way, really cool that people are valuing shielded transactions. Let's talk about central bank digital currencies. to Rao Paul for Real Vision put out a really important thread on this and really essential thread on this basically saying if you don't think central digital currencies are coming, you're totally missing the boat here. They are coming. They're maybe starting in China. What's your take on this news? Yeah, this thread came hot on the heels of the IMF calling for a

Starting point is 00:18:46 second Bretton Woods moment, which maybe just signals kind of what kind of situation the world economics status is in when we are calling for a revisitation of Bretton Woods. And for those that don't know, Breton Woods was when the world got together and decided to reorganize the entire monetary and financial system. So like big words. And they basically in that in that meeting made US dollars king at that. That's where that's where US dollar became king. Right. Exactly. That's exactly right. And so what Raul Paul is saying is that, you know, what's going on behind the scenes with the world macro environment, whatever it is, it's pointing towards central bank digital currencies. And, you know, there's an important nuance where, you know, central bank

Starting point is 00:19:28 digital currencies are not crypto. They're not cryptocurrencies. They are a centralized ledger on it with a digital format. Maybe it's a blockchain, but it's not a cryptocurrency. But what it does is it opens up people's acceptance and understanding of the real thing, right? It's a gateway drug. Yeah. So it's kind of like the PayPal case. A little bit of a PayPal case. little bit good and a little bit bad, maybe a little bit good for usage. Raul Paul makes the point where in the end, this could cost the U.S. dollar, not the short run. He's very bullish on that, but it could cost the U.S.

Starting point is 00:19:59 dollar's reserve currency status. David, we're getting close on time for news. Do you want to maybe end with the Coinbase report on what we're talking about the nation state? Coinbase released a transparency report that actually made clear which government agencies have been asking for further information about individuals or about transactions. And what were some of your takeaways from that transparency report? Yeah.

Starting point is 00:20:28 First and foremost, I would say that this is, while this is in the news cycle, this happened last week, this isn't that big of a deal. It's just something I think that people should keep an eye on. Like, this is a thing that is a reality. Coinbase is a centralized company inside the U.S., and if they need to give up information to authorities, they will do that, right? And so tip of the hat for Coinbase for being transparent about it and telling us what information requests are coming in. So, you know, just as a user, if you use Coinbase, just know that these requests happen.

Starting point is 00:20:56 And it's definitely one of those things that, you know, if you're not doing anything wrong, then this really isn't relevant to you. But just know that your information could be requested. 58% of all requests coming from the U.S. The majority of those from the FBI. The FBI is definitely watching what goes on in Coinbase. All right, David, that's been the news. tanks. What's on your mind? If people have been following me on Twitter and on the on the Bangalus Show, they've know, they know what's been on my mind. The Dominoe for crypto and Bitcoin

Starting point is 00:21:27 specifically have been falling faster and faster and faster. And this PayPal Domino is the most recent one is just the most recent one. And I bet you this is going to, I don't know what's going to happen next week, but I bet you it's going to be something. We have the election debate tonight. Maybe we're going to talk about relief. There's a stimulus. coming along the way. It just seems like, and the thing that's on my mind is that there's, there always seems to be like this elegant relationship between like the price chart of an asset, the market, the news and summary around that and just the overall sentiment and all these things kind of just resonate with each other. And to me, what I'm seeing is a complete resonance

Starting point is 00:22:06 between the narrative behind Bitcoin, the news behind Bitcoin and the fundamentals behind Bitcoin. All these things really seem to be resonating. And that's why we're going up into the right. Yeah, absolutely. So what I've been thinking about, right, so on, on county takes is maybe dovetails with what you're saying. I totally get what you're saying with Bitcoin and that is super bullish on the space and on Bitcoin, particularly in the short term. But I want to give maybe a spicy take here and people who, you know, know, I guess my Twitter account too, you shouldn't come as a surprise. But I think, think that Bitcoin is really preparing the way for Ethereum.

Starting point is 00:22:49 And specifically ether, the assets. We talked about earlier, second place in a settlement fees. That's now Bitcoin. It's already second place in transaction fees. That means Ethereum is doing more in transaction fees than Bitcoin. And it's second place now in a transaction volume as well. So like there's a trend here, second place, second place, second place. But Bitcoin is far and away, first place in

Starting point is 00:23:15 market cap. I don't think that'll last long term. And when I say long term, I'm not saying, hey, David, flippinging is imminent, right? It's happening 12 months, you know, 24 months. I'm not sure the time range on this. I think it'll take ETH tutorship. I think it'll take realization as to what Ethereum's monetary policy actually is and realization of ETH the asset. But my spicy take here is that Bitcoin is doing awesome and I'm super excited about Bitcoin, but it's really, just like a prophet preparing the way for the Messiah. It's really preparing the way for ether. I guess another take like that that is sort of a side quest on that is I hear so much misinformation from Bitcoiners and like not understanding what I would say is like the rest of

Starting point is 00:24:06 crypto. So even this term that is constantly used that's sort of embedded in crypto psyche, this term of alt-coin, right? So there's Bitcoin and then there's alt-corporon. implying there's like Bitcoin and the shit coins. But like I don't think there's any such thing as an altcoin. That was like a paradigm from 2015. Yeah. That I feel like is no longer relevant. What we have now are asset superclasses like just like traditional finance.

Starting point is 00:24:33 As we've known, as we've talked about for hundreds of years for hundreds of years and those asset superclasses in crypto are capital assets. We've crypto capital assets, crypto commodities, crypto monies. These are not alt coins. These are entirely different than alt coins. It's like saying, like, Apple stock is an alt coin of US dollars. Like, it's an alt coin of gold. No, it's a stock. It's a capital asset.

Starting point is 00:24:56 You're comparing a money to a capital asset. It's just such a backward way of thinking. And I feel like those with the wrong paradigm and wrong mentality are going to get left behind in the next bull cycle. Yeah. That's what's spicy take. That is a spicy take. And the all coin perspective was extremely appropriate.

Starting point is 00:25:14 when Bitcoin was getting forked with like menial changes, like change up the block speed and like, sure, that's that's an alt. Light coin. That's an old. Light coin, like Bitcoin like diamond, whatever. That's an alt. If it's an alternative to Bitcoin, yes. But Ethereum and tokens on Ethereum are not alternatives to Bitcoin. So kind of going back to what you were saying about, you know, second place in transaction fees, Bitcoin's second place in transaction volume, Bitcoin's second place in settlement value. It is worthwhile to note that like the whole point about Bitcoin though is being first place in market cap That's true that is its job which it is currently in first place And I think it is it's going to it's going to be a story for the ages whether or not Ethereum as the leader in all the other Categories literally every other category other than market cap does that mean that if the ether becomes number one in market cap or it does Bitcoin fulfill its job as

Starting point is 00:26:10 all it needs to do is be number one in market cap. That's a big coin wins. Yeah, if Bitcoin wins at two horse race, it'll be because of the strength of its scarcity meme. We will be sure, to be clear, we are bullish on both of these assets. David, let's get to the last portion. What are you excited about, man?

Starting point is 00:26:30 So third week of October, year of our lord, 2020. What is exciting crypto right now? Well, we just came out of the AMA with Danny Ryan, where we got some of the questions about ETH II that we really wanted to hear out of the way. Go listen to that AMA. It was fantastic. But it just made me really excited about the deposit contract.

Starting point is 00:26:50 Every time I pull up Twitter and I hit refresh, I'm like, is it here? This is the staking contract, right? Same day. Yeah, this is where phase one goes live. This is where ETH staking is a thing, where staking becomes one of the core pillars of ether value accrual. And every time I check my email, my Twitter, whatever, I'm like, I'm waiting for that announcement, like deposit contract announced. All right.

Starting point is 00:27:14 What's your gut? Like given we talked to Danny this week who's like he knows, right, more than anybody, and Vitalik this week, what's your gut on when staking contract ships will be able to stake Ethan? I'm going to be very specific. And I'm going to say a week from Monday. A week from Monday? Wait, what date is that?

Starting point is 00:27:35 That is going to be November 2nd. You think November 2nd? Announced. It will be announced. Announced. Okay, perfect. The day will be announced on November 2nd. And you think the actual date that it happens still this year, November, December?

Starting point is 00:27:50 It will be in November, yeah. Okay. I'm going to guess before Christmas, early December is my guess. God, both pretty bullish guesses. You're the bearish. Two weeks different. I guess I'm the bear now. Eath 2 will never ship.

Starting point is 00:28:07 Not until Christmas. Yeah. Christmas 2020, to be clear, not 2021 guys. All right, cool. Well, all right. So here's kind of what I'm excited about. And maybe this dovetails is another sort of Ethereum thing. But what I started seeing this week for the first time is projects launching directly not on Ethereum mainnet, but on Ethereum layer two. So generally, throughout the history of Ethereum, the place you launch a DeFi project or some new initiative is definitely going to be main chain, right? That's where you launch. But we saw three different projects this week launch on X-Dai, which is actually like a side chain of Ethereum.

Starting point is 00:28:51 So it's proof of authority. So it's not quite an optimistic roll-up. It's not based on the security of Ethereum altogether. But it's similar. It runs the EVM. It's like a copy of Mainnet. And we saw HoneySwap launch there. So if you haven't heard of Honey Swap, I barely heard of it either.

Starting point is 00:29:08 But it is a Uniswap clone, right? So they just launched a Uniswap. They forked a Uniswap and they put it on X-Di, and it's a new project that's launching, not on Mainet, but on the side chain. Circle EBI, the project we were talking about earlier, David, that launched directly on X-Dye. Also, the POAP, the Pope Tocons,

Starting point is 00:29:28 these are the bankless, bankless uses this as well. Now when you mint a POAP, that's an NFT token, you mint that on X-Di, and then you can bridge it over to Mainnet. I think this is the future of scalability for Ethereum. If you don't need Mainnet, you just launch on a layer two. That's some sort of a roll-up, that's some sort of an X-di-like side chain. And then to the extent you need Layer 2, or if it gets popular, or if you're a user and you want to migrate to back to the main chain, you can at any time. So that to me is how Ethereum scales, and that's kind of bullish. And it goes off maybe what we were talking about in the podcast with Vitalik in terms of

Starting point is 00:30:06 how Ethereum is going to take shape in the future. There's going to be a main chain and there's going to be all of these layer twos where you might not touch main chain, right, for like months or years. You might do all of your activity in a roll-up, a few roll-ups maybe in the future. So excited about that. It's coming to fruition. It feels like Ethereum has a scalability strategy. that is not just pie in the sky, it's actually starting to happen.

Starting point is 00:30:32 Yeah, Anthony Sizano illustrates it as a Ethereum as a nexus, right, where it's just like traffic controlling, you know, value from different roll-ups, right? And, you know, this is part of Ethereum's value proposition where Ethereum, you, like, people don't even know, need to know what Ethereum is or understand it as a protocol in the same ways that we don't really need to know what TCIP or SMS or those protocols. Like, we just use them, right? And they're just in the background. And, you know, Ethereum being the L1 and L2s being the place that people actually engage in you have activity in, is just putting Ethereum in the background and letting it do its drop.

Starting point is 00:31:10 Absolutely. Very cool. David, we kept our commitment. This is about 25 minutes. We got through five topics. Five minutes each. We talked about market. We talked about releases, news, some hot takes and what we're excited about. Guys, hope you enjoyed this episode. Hopefully it was a good end to your week. from David and Lyme. Enjoy your weekend. And thanks a lot of your nights.

Bankless - ROLLUP: 3rd Week of October

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