ROLLUP: Solana & Arbitrum Outages | OpenSea Front-Running | Elizabeth Warren Crypto

3rd Week of September, 2021 ------- 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/ 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ ------ BANKLESS SPONSOR TOOLS: ⚖️ ARBITRUM | SCALING ETHEREUM https://bankless.cc/Arbitrum 🍵 MATCHA | DECENTRALIZED EXCHANGE AGGREGATOR https://bankless.cc/Matcha 🔐 LEDGER | SECURE YOUR ASSETS https://bankless.cc/Ledger 🦄 UNISWAP | DECENTRALIZED FUNDING https://bankless.cc/UniGrants ------ 📣 TracerDAO | Perpetual Pools are now Live on Aribtrum! https://bankless.cc/Tracer ------ Topics Covered: 0:00 Intro 1:50 MARKETS 2:10 BTC Price 100W SMA: https://twitter.com/intocryptoverse/status/1437156801850527753?s=21 Golden Cross: https://twitter.com/intocryptoverse/status/1437940127603494917?s=21 WBTC Minting: https://twitter.com/WBTCBot/status/1437581280904876040?s=20 5:15 ETH Price 5:46 ETH/BTC Ratio 5:59 DeFi Action BED Index: https://www.indexcoop.com/bed 8:18 Layer 2 L2Beat: https://l2beat.com/ Arbitrum: https://twitter.com/Arbitrum2day/status/1437339427806715911 11:35 EIP 1559 Burn: https://ultrasound.money/ Layer 2s: https://twitter.com/dividend_fire/status/1437086130327928836?s=21 14:38 Bridges Connext https://twitter.com/dividend_fire/status/1437086130327928836?s=21 Dashboard https://dune.xyz/eliasimos/Bridge-Away-(from-Ethereum) 17:10 Gitcoin Round 11 https://twitter.com/gitcoin/status/1435991454392930308 19:30 RELEASES 20:00 TracerDAO https://bankless.cc/Tracer 22:19 Into the Bytecode https://twitter.com/sinahab/status/1437380863797473280?s=20 23:08 Optimism Limit Increase https://twitter.com/optimismPBC/status/1437437368303329289 23:54 Zapper https://twitter.com/zapper_fi/status/1437884287756509193?s=20 25:26 Raises Coinbase: https://twitter.com/CoinDesk/status/1437387327505108992? https://twitter.com/CoinDesk/status/1437387327505108992 s=20Steve Cohen: https://decrypt.co/80825/billionaire-steve-cohen-nft-startup-recur-50-million-series-a Immutable: https://www.theblockcrypto.com/linked/117620/nft-scaling-startup-immutable-raises-60-million-in-series-b-funding 29:56 Jobs https://jobs.banklesshq.com/ 29:59 NEWS 31:09 Solana Outage https://twitter.com/SolanaStatus/status/1437856638279487493?s=20 33:48 Arbitrum Went Down https://medium.com/offchainlabs/arbitrum-one-outage-report-d365b24d49c 34:45 A Tale of Two Outages Arbitrum: https://twitter.com/krzKaczor/status/1437862946948980741?s=20 Was it Down? https://twitter.com/dzack23/status/1437923828391424005?s=21 41:10 Takes Hudson: https://twitter.com/hudsonjameson/status/1438038974946283530?s=21 Kyle Samani: https://twitter.com/KyleSamani/status/1437882572801970177?s=20 Gavin Wood: https://twitter.com/gavofyork/status/1437880885676855297?s=21 54:26 Ethereum Failed Attack https://www.theblockcrypto.com/linked/117637/unsuccessful-attack-on-ethereum-managed-to-trick-a-few-nodes 56:25 EY & Polygon https://twitter.com/0xPolygon/status/1437881362887946251 58:46 Vitalik top 100 https://time.com/collection/100-most-influential-people-2021/6095980/vitalik-buterin/ 59:50 Opensea Drama https://twitter.com/ZuwuTV/status/1437921263394115584?s=19 1:03:50 Arbitrum NFT Market https://twitter.com/Agusx1211/status/1437823065564631045 1:04:55 Bored Apes in Sothebys https://www.theblockcrypto.com/post/116715/collection-of-bored-ape-nfts-break-sothebys-estimates-with-3-days-to-go 1:05:45 Fidelity BTC ETF https://www.bloomberg.com/news/articles/2021-09-14/fidelity-pushed-for-bitcoin-etf-approval-in-private-sec-meeting 1:07:00 Microstrategy Buys https://twitter.com/fintechfrank/status/1437395735180419077?s=20 1:07:40 Elizabeth Warren & Gary Gensler https://www.theblockcrypto.com/linked/117651/elizabeth-warren-and-gary-gensler-place-coinbase-in-oversight-crosshairs 1:14:00 TAKES 1:15:00 David’s Punk https://twitter.com/TrustlessState/status/1437898773171032064?s=20 1:18:25 Scale and Build https://twitter.com/scott_lew_is/status/1435951889183612933 1:19:44 Hollowing Out Banks https://twitter.com/0x_tigerswami/status/1437951680163758081?s=20 1:22:27 Toxic Maxi https://twitter.com/sassal0x/status/1437975866160476164?s=20 1:24:35 What David’s Excited About 1:25:30 What Ryan’s Excited About 1:26:24 Meme of the Week https://twitter.com/josephdelong/status/1437253108296474625?s=20 1:27:42 Closing & Disclaimers ----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research. Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:07Ryan Sean Adams?

  Hey Bankless Nation, happy 3rd week of September. It's rollup time. David, this rollup's coming a day early. You are off on a trip somewhere. We're releasing this on Thursday instead of Friday, so you guys get a jumpstart to your rollup this week. David, where are you headed?

• 0:21David Hoffman?

  First to Denver for MCon, coming in a day late, but gonna have a fun time hanging out with all the people at Meta Cartel and also all the Denver homies. Denver, home of ETH Denver, always feels like home for talking to all the DeFi crypto Ethereum bros. And then after that, going over to MainNet in New York for a whole nother week at Missouri MainNet, which is also going to be fantastic. New York has a fantastic crypto scene and I'm there for a whole week. Pleaser Dow is throwing a dog party. There's gonna be a bunch of parties as well, so I'm looking forward to it. Yeah, I got my bags already packed. As soon as I'm done recording this, I am off to the airport.

• 0:58Ryan Sean Adams?

  That's awesome, man. Well, enjoy yourself. I'm glad you're getting out there. I'll be holding the home front.

• 1:05David Hoffman?

  I know you will.

• 1:08Ryan Sean Adams?

  That's how we roll. Alright, guys, this is an episode where we take you through markets, releases, news, takes what you're excited about. We end with the meme of the week, so make sure you stay tuned to the end. David, I think there are two major hot subjects this week. What are they?

• 1:21David Hoffman?

  Yeah, we got a tale of two outages. Both Solana and Arbitrum went down. Actually, I think within like the same few hours of each other. And also at the same time, Ethereum also had an unsuccessful attack. And so this weekly rollup is going to be a lesson in distributed network consensus and uptime, and why some things should not be tinkered with. In addition to that, there's an OpenSea employee front-running the customers, so there's lots of drama there. And then of course, Elizabeth Warren has some hot takes, which I think are hilarious, I think which will come towards the end of the show.

• 1:58Ryan Sean Adams?

  She's making a lot of the rollups lately. I think she's saying, "Washington, well deserved Elizabeth Warren." You were definitely saying things worth talking about.

• 2:06David Hoffman?

  At the very least, yeah.

• 2:09Ryan Sean Adams?

  All right, guys, we are going to get into the markets. Let's start there. David, what's Bitcoin showing us this week?

• 2:14David Hoffman?

  Bitcoin started the week at $46,500, fell down to the low, low price of $44,000, and is currently at the high, high price of $48,250, eyeing that $50,000 Bitcoin level. Not quite there yet, but looking real strong.

• 2:32Ryan Sean Adams?

  What are the traders telling us, David? This is Ben Cohen, who I know you're a fan of. What's he saying? He's saying 100-week SMA? Is this some sort of moving average of Bitcoin?

• 2:45David Hoffman?

  So the SMA is the simple moving average, I think, yeah, as opposed to the exponential moving average. So it's the slower of the two moving averages. And it's just, he follows it up, saying the price is noise. And when you do the simple moving average, the Bitcoin price just kind of looks like a wavy line going up into the right. I thought this tweet was pretty interesting and nice perspective. You don't really see like these-

• 3:07Ryan Sean Adams?

  Not very alarming there. It's just like slithering up like a snake.

• 3:11David Hoffman?

  Like naturally, when you put the price into a simple moving average, of course, it turns into a line. That's what the moving average does. But it's just a nice perspective to have that like, the more you zoom out, the more Bitcoin just looks like an up into the right chart.

• 3:24Ryan Sean Adams?

  Well, we talked about this in our episode with Ledger when he was teaching us a little bit about TA. We mentioned, I think it was a death cross at the time, but now the Bitcoin golden cross has arrived. Just a few months later, what is the Bitcoin golden cross?

• 3:37David Hoffman?

  Right, yeah. So it's the opposite of the death cross. Ledger reminded us that this is a lagging indicator. So all this is saying is that one simple moving average, which is the faster of the two, the blue one here versus the orange one, has crossed. And so now we are going, and our local price has moved up faster than the long-term price, which indicates bullishness. And if anyone was listening to that Ledger show, and they were calling the fact that this was a fake out or a bear trap, congratulations. This, I guess, now proves that you are right. But Bitcoin, yeah, the simple moving average, or the short-term moving average, which I think is the 50-week, again, we're not traders here, is now above the 200-week moving average, which I believe is what the golden cross is.

• 4:23Ryan Sean Adams?

  It's funny, we had him on just after the death cross was crossed, right? And he said it could mean something, it might not mean anything, but you know, it could mean bad things. And here we are at the end of the summer, we've just hit the golden cross. Looks like Bitcoin is gearing up for another run, maybe all of crypto, that's what we've been kind of talking about the last couple of weeks. This is really interesting. The wrapped Bitcoin bot, so this is wrapped Bitcoin on Ethereum, they just minted 2,500 Bitcoin, that's 113 million dollars worth of Bitcoin on Ethereum. You don't see that every day. Impressive amount of Bitcoin continues to be tokenized on Ethereum.

• 5:02David Hoffman?

  Yeah, a bunch of WBTC liquidity coming to DeFi. This is more Bitcoin in a single minting transaction than all of the Lightning Network, which is, kind of puts things into perspective.

• 5:12Ryan Sean Adams?

  Ooh, it does. Alright, let's talk Ether. Price of Ether this week, we are higher on the week. What's going on here?

• 5:20David Hoffman?

  Yeah, absolutely. We started this week at 3,500 dollars, hit the low, low price of 3,200 dollars, and we are currently at the high of the week at 3,560 dollars overall, up 3.5% on the week.

• 5:33Ryan Sean Adams?

  This is the death rattles of the crab market, in my opinion, David. I really think we're due for a breakout. We'll see whether that remains true, but

• 5:41David Hoffman?

  People are bullish.

• 5:42Ryan Sean Adams?

  People are bullish. We're getting into that season, that fall season. What about the ETH to Bitcoin ratio? What's that telling us this week?

• 5:49David Hoffman?

  Yeah, ETH Bitcoin ratio 0.074, mostly flat with a slight note of up on the week, but largely flat.

• 5:57Ryan Sean Adams?

  Largely flat. How about locked, total locked in DeFi on the DeFi Pulse Index? We're at 90 billion this week, still haven't hit that 100 billion mark, which is the next major threshold up, but you know, not down on the week. What's going on here?

• 6:12David Hoffman?

  Yeah, currently clocking in at 90 billion locked in DeFi. That flash crash that we saw about a week ago, where there was a bunch of cascading liquidations, now just looks like it's deeply in the rearview mirror, kind of almost looks like it never happened. And again, eyes are on 100 billion dollars locked in DeFi.

• 6:29Ryan Sean Adams?

  Eyes I don't feel like are on DeFi tokens themselves. Maybe they should be, I'm not sure. What's the DPI showing us this week, David?

• 6:38David Hoffman?

  Yeah, DPI coming in at 398 dollars right now. Started the week at 365, hit a low, low price of 324 in the middle of the week, and is currently coming in right below 400 dollars.

• 6:51Ryan Sean Adams?

  We got a nice 12% rise in the week in DeFi tokens, so that's looking okay. But the test of whether it's DeFi season versus ETH season is right here in the DPI to ETH ratio. David, we are still under 0.13, my friend, but up a little bit on the week.

• 7:07David Hoffman?

  Yeah, I think roughly up maybe 12% on the week since we last talked about it. I want to have hope, but I've learned my lesson. So we're gonna go ahead and wait and see for this one to start to have a meaningful breakout. It is still in a very long descending channel that it started ever since March. But again, like, I feel like a bull market would really set off some DeFi tokens.

• 7:31Ryan Sean Adams?

  You kind of wonder whether we're gonna have another ETH season first or a DeFi season first. If you had to guess, what do you think? ETH season or DeFi season?

• 7:38David Hoffman?

  ETH season, yeah.

• 7:40Ryan Sean Adams?

  ETH season.

• 7:41David Hoffman?

  Which maybe, maybe means the actual.

• 7:42Ryan Sean Adams?

  It's a contraindator.

• 7:46Ryan Sean Adams?

  But how about the bed? This is the combination. Can't go wrong on the bed index because this is the combination of Bitcoin, ETH, and DeFi tokens, a third, a third, a third, and we are up on the week. This chart likes to go up.

• 7:58David Hoffman?

  Last week was the first major, like, not up week. I think we were down 8% and we are up 5%, 5.5% on the week. Overall, over the full month, we are up also 5.5% on the month. The all-time chart for the bed index, again, looks fantastic. The bed index, the best crypto index there is.

• 8:19Ryan Sean Adams?

  Do you know, speaking of fantastic, I think these are the numbers of the week right here.

• 8:22David Hoffman?

  Look at that. And this is what we've been waiting for. Man, we all knew that that was gonna come.

• 8:27Ryan Sean Adams?

  We called LT summer, uh, earlier in the summer. We're not the end of summer. So it's like LT summer, fall edition, as we said before.

• 8:35David Hoffman?

  It was fall.

• 8:35Ryan Sean Adams?

  We're starting to see it. We're starting to see it, David. A little bit late, but better late than never. Arbitrum, 2.3 billion locked. I don't know, last time when we had Arbitrum on the podcast, a week and a half ago, it was like we were celebrating 30 million or something, 50 million, something like that. Suddenly, we're at $2.3 billion in value locked on Ethereum's largest layer.

• 9:00Ryan Sean Adams?

  There too right now and that just exploded from like Friday up until now. Uh, super impressive here. What's going on?

• 9:07David Hoffman?

  Yeah. Overall, all value in all L2s has been up 300% over the last seven days, which again, it only, it seems to be up into the right because, because L2s are really in their infancy, right? So like value can I kind of only flow on there. There's no value to flow away from there. But yeah, Arbitrum dominating the week this week. That's because they went live last week. So that's like, you know, obvious. And so like now it's up to the open permissionless world of developer, developers and APers to get a bunch of value into Arbitrum. They are up over 3,000% of value increased when they finally opened up and removed the whitelist and allowed, you know, the open source community to start tinkering.

• 9:46Ryan Sean Adams?

  Now, we should say some of this volume is like, in fact, a lot of this volume is not like the Uniswap and the kind of the balancer and the more sustainable DeFi protocols. A huge chunk of it is actually in kind of a meme farm token. This is a Nyan Cat meme, another one. We've got it going on in layer two right now. This is $2 billion uh flowing into Arbitrum from the Nyan Cat meme token. I haven't even looked at this, man. What is it?

• 10:12David Hoffman?

  Yeah, no, it's exactly right. It's a, it's a yield farm based off of a meme. And like when we talked about the whole layer two summer meme, we meant yield farming. I kind of thought, I kind of thought yield farming with like, you know, Uniswap and balancer and Ave, like not necessarily memes, but hey, like like yield farms on our yield farms, right? And like the dollars on the uh, the value that's been sent to Arbitrum has been in Ether. I think there might also be these Nyan Cat tokens too, but like it's because a lot of Ether has also moved over to Arbitrum to farm this token. And so like, I guess, Kray, we had a meme pull a bunch of Ether onto Arbitrum. At least there's Ether now there.

• 10:52Ryan Sean Adams?

  Look, man, a year ago, that meme coin would have been on mainnet. Now it's on, now it's on layer two, which is kind of where it should be, right? So it's a good place to experiment. It's also like permissionless. I mean, someone's complaining. I saw someone complaining about this on Twitter, David, like, what? Like another meme token on A layer two, it's just like, yeah, we can't control. Like, it's just.

• 11:14David Hoffman?

  They're all memes.

• 11:15Ryan Sean Adams?

  Yeah, they're all memes. Anyone can build whatever they want. So no surprise that, um, you know, this is one of the first, uh, application. I don't think it'll stay the dominant applications for, uh, for Arbitrum. But, um, anyway, it's good to see some, some traction there. Certainly these kind of experiments are happening on other ETH killer type, uh, chains as well. Let's talk about this too, David. The burn. Are you feeling the burn? These layer two are starting.

• 11:40David Hoffman?

  Layer two burn, layer two.

• 11:42Ryan Sean Adams?

  Layer two burn. Okay. What's, what's that like? What's going on here?

• 11:44David Hoffman?

  Yeah. So we're getting a lot of economic activity going on, on optimism and now also Arbitrum. And in over the last 24 hours, they have both themselves shown up on the ETH burn leaderboard on ultrasound dot money. So, uh, optimism came in at burning 138 ether yesterday and Arbitrum burnt 115 ether. I believe that puts that, uh, Arbitrum at number seven and Arbitrum, uh, optimism at number seven, Arbitrum at number nine. On the 24 hour ETH burn leaderboard, which is letting us know that there is enough economic activity going on, on these layer twos. That when they actually make a layer one transaction, there's a lot of activity going on there and they're burning a lot of ether. L twos are alive. Nice.

• 12:26Ryan Sean Adams?

  That was on, uh, September 11th and September 12th. I don't know if they're still in the top 24.

• 12:30David Hoffman?

  That was a few days ago. Okay.

• 12:31Ryan Sean Adams?

  Do you remember when we talked to you, uh, the Arbitrum folks, we asked the question of like, how long is it going to take to see layer two on the leaderboard? And they said, end of the year, right? Well, now we've already got a glimpse. I don't know if they'll be on the 30 day leaderboard, but at least they're on the, the one day leaderboard. And I think there will come a time, David, when essentially the entire ETH burn leaderboard, most of the economic activity and transactions will all be layer two. That is the plan for Ethereum essentially to scale its execution layer on layer two. And so a whole bunch of these layer twos will be burning a lot of ETH. We'll pack our bags, we'll migrate, we'll be living our lives on the layer twos and extended, uh, universe. We won't be on the main net anymore. Like getting out of Manhattan, we're moving to the suburbs. That's what's happening here.

• 13:15David Hoffman?

  Right. And as a, as a quick lesson for people who want to live on layer two, it is the. Arbitrum or our optimism like contract that is making that transaction on the layer one on your behalf. And so all of your assets, whenever optimism or Arbitrum makes a transaction on the L1 to update the state, that's you not making a transaction, yet still making a transaction on Ethereum. You get the benefits of having a transaction, but you didn't pay for any of the gas.

• 13:44Ryan Sean Adams?

  Magic. All right. We're burning a lot of ETH. Let's see, ultrasound awakening. This is ultrasound dot money website. And I think we passed a couple of thresholds here. The first is 300,000 ETH burnt.

• 13:58David Hoffman?

  In the last hour of the time of recording. So this is Wednesday 15th at 2pm PST. We just passed 300,000 ETH burnt.

• 14:07Ryan Sean Adams?

  We also passed another threshold in US dollars. This would be $1 billion worth of ETH have been burnt in the past, what, six weeks or so? Incredible.

• 14:17David Hoffman?

  No, all time. Oh, yeah. Six weeks, six weeks.

• 14:19Ryan Sean Adams?

  Six weeks since the launch. It's only been live for six weeks. Every six weeks, you burn a billion dollars worth of ETH. It's gotta do something to supply economics there. It's gotta add a little bit of scarcity.

• 14:32David Hoffman?

  Just a smidge. It's more ether than I have. That's for sure.

• 14:35Ryan Sean Adams?

  Yeah. All right. Well, in what's going on here? So I think the the bridge protocols are doing some cool stuff too. And interoperability protocols. This is connects was connects reporting out.

• 14:46David Hoffman?

  I mean, we're overall just seeing an absolute blossoming of the whole entire layer two ecosystem. We see money moving on to Arbitrum and optimism. And once money's on there, the L2 bridges, it's now it's their turn to have a bunch of value flow. So connects just announced that they had a $500 million of cross chain transactions has gone through their protocol since they launched their vector, their V1, I think, maybe six or eight weeks ago or so. And so like, I think we're just going to start seeing these milestones just start flying by as more and more people move on to L2s and then want to do stuff on other L2s, yet don't want to be bothered with the L1 transaction. They're just going to use the cross L2 bridges.

• 15:28Ryan Sean Adams?

  These flows, like $500 million, like, it's just nothing, right? It's just the numbers we're talking about in DeFi are absolutely tremendous. And guess what? A year from now, I think these numbers are going to look tiny.

• 15:38David Hoffman?

  Super tiny. Right. Yeah. Remember when we were celebrating 1 billion locked in DeFi? And now we're almost at 100? That was less than a year ago, by the way.

• 15:46Ryan Sean Adams?

  Really?

• 15:47David Hoffman?

  Yeah.

• 15:49Ryan Sean Adams?

  I can't believe that, man. I can't believe how fast this space grows. Let's talk about this. $7.5 billion are locked inside of bridges or have crossed over from Ethereum to either an alternate Layer 1, or to a Layer 2, or to a sidechain, something like Polygon. And this is a chart on Dune Analytics that shows all of that activity. The vast bulk of this, this looking like is on Polygon, but there's some bridging to-

• 16:19David Hoffman?

  A healthy amount elsewhere, too, I would say.

• 16:22Ryan Sean Adams?

  Yeah, a healthy amount elsewhere, too. And, you know, things like Arbitrum, of course, are like quickly moving up. If you look, actually, in the past 15, 30 days, it's a much more distributed amount here. Actually, Avalanche, too. Kind of interesting that the model for Ethereum being sort of the, you know, Anthony Sisano has called this like the economic nexus, right? We've called this before, the chief settlement layer for crypto. And so all of these assets essentially ultimately settle on Ethereum, but they're being bridged to these other chains in, you know, for use inside of those ecosystems, too. And it's kind of interesting that you can see all of this on chain.

• 17:05David Hoffman?

  Totally.

• 17:07Ryan Sean Adams?

  Any other takeaways from that? Or should we talk about Gitcoin? Gitcoin doing their grant round 11, number 11. I remember like number one a long time ago now. And some pretty interesting stats here, David. What are they?

• 17:20David Hoffman?

  Yeah, Gitcoin already on day one, this is their announcement, I think, at the time of recording, we're at day like six or seven or something. So when you are hearing this, you only have a few days left to deposit or to donate any money to any of the grants that you see fit on Gitcoin. But since then, on the first day, they've already had over 4,600 contributions from 350 people, $36,000 coming in on the very first day. And so you can go to Gitcoin and donate to your favorite grant project of what you want to see funded.

• 17:51Ryan Sean Adams?

  Absolutely.

• 17:51David Hoffman?

  Fund public goods. That's important.

• 17:54Ryan Sean Adams?

  All right, David, we are going to get to the releases next, and then we're going to talk about the news. But before we do, guys, we want to thank the sponsors that made this episode possible.

• 18:02David Hoffman?

  Living a bankless life requires taking control of your own private keys. Not your keys, not your crypto. That's why so many in the bankless nation already have their Ledger hardware wallets, which makes proper private key management a breeze. But the Ledger ecosystem is more than just a secure hardware wallet. Ledger is the combination of the Ledger hardware wallet and the Ledger Live app. And if you're used to seeing all of your crypto services and favorite D apps all in one place, Ledger is where you want to be. Not only does Ledger let you buy crypto assets straight from the app, but it also hooks into decentralized exchange aggregators like Paraswap, which makes sure that you are getting the best prices on your trades without your assets ever leaving your control. DeFi never stops growing, and the Ledger Live app grows alongside with it. So click the link in the show notes

• 18:47David Hoffman?

  to see all the DeFi apps that Ledger Live has. And stay tuned as more and more apps come online. And if you don't have a Ledger hardware wallet, what are you even waiting for? Go to ledger.com, grab your Ledger, download Ledger Live, and get all of your D apps all in one place. Arbitrum is an Ethereum scaling solution that is going to completely change how we use DeFi. If you've been using Ethereum for the past 12 months, you've probably noticed the high gas fees and the slow confirmation times that have been plaguing DeFi. Too many people want to use Ethereum, and it doesn't have enough capacity for all of us. That's where Arbitrum comes in. Arbitrum is a Layer 2 to Ethereum, which means Arbitrum can increase Ethereum's throughput by orders of magnitude at a fraction of the cost of what we are used to paying. When interacting with Arbitrum,

• 19:32David Hoffman?

  you can get the performance of a centralized exchange while tapping into Ethereum's level of security and decentralization. This is why people are calling this Ethereum's broadband moment, where we get to add performance onto decentralization and security. If you're a developer and you want to save on gas costs and make an overall better experience for your users, go to developer offchainlabs.com to get started building on Arbitrum. If you're a user, keep an eye out for your favorite DeFi apps building on Arbitrum. Arbitrum has been working with over 300 teams, including Ethereum's top infrastructure projects, and will be opening up to all users shortly. There are so many apps coming online to Arbitrum, so you may want to pack your bags in preparation for the great migration to the Arbitrum Layer 2. To keep up to speed with Arbitrum,

• 20:16David Hoffman?

  follow them on Twitter @Arbitrum and join their Discord.

• 20:21Ryan Sean Adams?

  Alright guys, we are back with the hot releases of the week. David, let's start with this. We've been talking about the Tracer DAO for a long time. Now, the Tracer DAO is launching their Perpetuals product. It's not out today. I think it will be out by the time you listen to it. A pretty cool product that I'm personally excited about. And Tracer DAO is a friend of The Beggar Show and has sponsored us as well. But like, what are they releasing?

• 20:45David Hoffman?

  Yeah, so they're releasing a brand new DeFi primitive, which I think people will be familiar with similar products. If you know Index Co-ops, FLI tokens, these are tokens that track the price of BTC or ETH in a leveraged fashion. And so that's a kind of a novel concept, right? And so it's a single token that moves in a leveraged fashion to the actual like underlying, right? And that's nice because of that. People like leverage, but then they also like composability and you're getting that as well. And then also people like liquidity pools and providing liquidity and gaining yield on that. And so this is kind of a hybrid product, a liquidity pool, leveraged liquidity pool, which this is Perpetual Pools is what

• 21:27David Hoffman?

  they are calling it. And this is a brand new product coming out of Tracer DAO, which if you are a trader and want to try a brand new DeFi primitive, this might be for you.

• 21:37Ryan Sean Adams?

  Yeah, it's kind of cool too, because people also like low gas fees. And this is deploying, not first on mainnet, but it's deploying first on Arbitrum. So another win for the Arbitrum chain. And I think like, in my head, this is sort of like, you know, it's got Perpetuals, like DYDX, so you get an ETH Perpetuals product. And then it's got an element of like,

• 22:00Ryan Sean Adams?

  it's got an element of like Uniswap, because you're, you know, you're sort of trading with a pool. And then it also has this FLI component, almost like Set, where you actually have tokenized versions of these Perpetuals. So it's kind of a cool blend and excited to see how it does particularly on Arbitrum. David, a new podcast is coming to the cryptosphere as well. This looks like maybe an Ethereum type of podcast. I haven't listened to this one, but first episode with Vitalik. I listen to every single Vitalik episode. And also Carl Flourish from the Optimism team, where they talk about retroactive public goods funding. What's this podcast about?

• 22:38David Hoffman?

  Yeah, it's just, I think it's a podcast. He only put out one single tweet about what it's about. But any podcast that has their number one episode with Vitalik Buterin and Carl Flourish is something that captures my attention. So it looks like it's going to be a little bit of a crypto economic, technically focused podcast. I think we're going to have to wait and see for this podcast really take shape. But I'm always excited to see new podcasts come into the cryptosphere.

• 23:01Ryan Sean Adams?

  We support crypto media. This one is called Into the Byte Code. We'll include a link in the show notes for you as well. This is cool, too. A roll up already expanding. This is an FYI from Optimism on the release chart. They just doubled the throughput limit on mainnet. We always knew these rollouts were going to roll out in kind of this, like, graduated fashion, right? So not like completely release the governors and all of the valves day one. Now they're starting to increase the transactions per day. So 200,000 transactions per day is what Optimism is now set at. So that's doubled. Stay frosty, stay optimistic is the message there. Good to see the rollups increasing in transaction throughput in a cautious way.

• 23:45David Hoffman?

  Yeah, weird. It's kind of interesting to see people cautiously roll out scale onto their chain. I'm sorry, we'll get to that part later.

• 23:53Ryan Sean Adams?

  It's a good move. Zapper, they're releasing, "Our Terminators cordially invite you back to the Zapperverse." So this is a new season of Zapper. I'm actually not sure about this one, David. I haven't read all of the details. What's Zapper up to here?

• 24:07David Hoffman?

  Yeah, their first season was all about that. They started to gamify their application, right? And so you would go and do activities and you would level up. And I think that the seasons is just reference to like seasons that we've seen on like Diablo 3 has these, Overwatch has these, whatever competitive like game has these, they have them as seasons. But then at the end of the season, you reset and go back to level one. So I think what's going on here is that they have reset everyone and set on a new bunch of quests onto the Zapper metaverse, if you will. And now there's a bunch of things to do. The entire speculation about this whole thing is that you are giving Zapper provable active use of their application

• 24:48David Hoffman?

  that could be something that they leverage in the future with stuff. So maybe, I don't know. I don't know anything.

• 24:58Ryan Sean Adams?

  I don't know anything either.

• 24:59David Hoffman?

  I don't know anything.

• 25:00Ryan Sean Adams?

  What we have seen in the past is retrospective, retroactive airdrops for use.

• 25:06David Hoffman?

  So you're gonna say it out loud.

• 25:08Ryan Sean Adams?

  I'm not gonna say that with respect to Zapper because I have no idea, David. But I am saying that could fit a trend that we've seen elsewhere. So do these quests because they're fun, but do them to learn DeFi, do them to gamify, and do them because you never know what could happen in the future. All right, let's talk about raises this week. Coinbase, they don't need money, but they're raising money, David.

• 25:32David Hoffman?

  Because money's free these days.

• 25:33Ryan Sean Adams?

  I guess. What's interesting is how they're raising it and who they're raising it from. This is a $1.5 billion offering from Coinbase for debt, essentially bonds. We call these in the market like junk bonds. So Coinbase is raising, I think they're doing this, their stated reasons are M&A activity, like acquisitions, basically. Coinbase wants to go buy a bunch of things. It's super funny because, you know, of course, MicroStrategy and Michael Saylor has used the same, the same tool in the bond markets to go raise funds at a very low interest rate, and then he goes and he buys Bitcoin. It would be so hilarious to me if Coinbase just turned around and bought some like crypto with this.

• 26:15David Hoffman?

  Why the hell not?

• 26:16Ryan Sean Adams?

  Like, I mean, money's so cheap and they could definitely do that. I'm not sure that they will, they'll probably get, you know, use this money for other things, get exposure into other things. But this is a pretty good showing and I gotta say, you know, even Bloomberg is reporting, this, this shows that crypto is really going mainstream because the bonds didn't just like sell, they sold out in a flash and there was a ton of interest in these assets and it was very easy for Coinbase to do. So people are seeing this as like Coinbase, the market's not afraid of Coinbase's position with respect to regulators in the SEC. This is kind of a show of strength and another $1.5 billion added to the war chest.

• 26:57David Hoffman?

  Coinbase, do it again, I dare you.

• 27:01Ryan Sean Adams?

  Start dollar cost averaging into crypto with it as well.

• 27:04David Hoffman?

  Buy back your own stock.

• 27:06Ryan Sean Adams?

  Absolutely hilarious. All right. Billionaire Steve Cohen just raised, just invested in an NFT startup Recur. It's called $50 million raise here. What is Recur up to? This is like an NFT platform of some sorts, David?

• 27:23David Hoffman?

  Right. I had never heard of this NFT platform, but it turns out they're doing some interesting stuff. Recur has, just like you said, raised $50 million, not only from Steve Cohen, but Steve Cohen was participating for a valuation of $333 million, which is pretty high for an NFT platform that I've never heard of before.

• 27:42Ryan Sean Adams?

  Hasn't been launched, maybe?

• 27:43David Hoffman?

  Yeah, which is kind of interesting. But I mean, we all know that NFTs are something that resonates very, very well with non-crypto people. So like, maybe this is like, the NFT world has hit some escape velocity where like, non-crypto, there's a non-crypto side of NFTs that we just don't know about. Anyways, Recur is starting off a product which is kind of like NBA top shots in the sense that they like snapshot moments from, instead of NBA, collegiate football. So we are now NFTing moments from college football, which is a very, very big ecosystem. If you're, if you're not inside of the United States or you don't care about football, college football is a very big deal. It's a very big industry.

• 28:24David Hoffman?

  And so we are now kind of doing the same thing that we're doing with NBA top shots, but now we're doing it for college football. And apparently Steve Cohen really likes that idea to the point where he would help this NFT startup raise $50 million.

• 28:36Ryan Sean Adams?

  It's interesting because we've gotten to the stage where we're like just past the billionaire legendary investors investing in crypto assets. And now they're like down the NFT rabbit hole. Like we're at that point in crypto saturation. He's totally sold on that. Interesting to see what will come of that. David, another raise this week. This is in the NFT side as well. Immutable X just raised $60 million in a Series B funding. This is an NFT exchange minting trading platform that is all based on Ethereum's layer two. So they use. DK roll up tech. So it's lightning fast. Cool to see that they have raised a bunch of big names in this investment as well.

• 29:18Ryan Sean Adams?

  You know, Galaxy Fabric, uh, who else? Apex Capital, even Gary Vee, it looks like got in on this with, with his fund. What do you make of this?

• 29:29David Hoffman?

  Yeah, this has got to be the last raise that they make before they issue their token because they're also going through a coinless token sale for the IMX token. And I'll be honest, I've been like typing IMX into CoinGecko every now and then just to see if it shows up. It hasn't yet. But everyone's kind of waiting for this IMX token to come out. Disclaimer, me and Ryan are seed investors in IMX3. I think we were in the last round.

• 29:52Ryan Sean Adams?

  One of those, one of those rounds. I can't remember which one.

• 29:54David Hoffman?

  One of those.

• 29:56Ryan Sean Adams?

  All right, uh, jobs. Hey, this is your opportunity. We say this every single week, but if you don't have a job in crypto, go get a job in crypto. Get a job. It's great.

• 30:05David Hoffman?

  So fun. It's so fun.

• 30:07Ryan Sean Adams?

  Start working for a DAO, do something in crypto. This is some hot jobs of the week.

• 30:11David Hoffman?

  Even DAOs are posting jobs.

• 30:13Ryan Sean Adams?

  DAOs, DAOs, are DAOs hiring other DAOs too? DAOs are hiring DAOs, DAOs are hiring people.

• 30:19David Hoffman?

  Hiring is happening.

• 30:20Ryan Sean Adams?

  To grow. Yes.

• 30:21David Hoffman?

  Everyone's getting jobs and everyone's getting hilarious jobs and you're missing out some derivative of that original statement.

• 30:27Ryan Sean Adams?

  Here's a job. Like even if you don't have technical skills, uh, pick up this community lead role from popcorn. So this is a B5 Protocol. Community lead role. This would have been my dream job, like at one point in time. Uh, go check that link out.

• 30:42David Hoffman?

  All you do is make memes and chat in Discord. Like it's the coolest job ever.

• 30:47Ryan Sean Adams?

  Senior software programmer as well. That requires a bit more tech skills, but you can take a look at that too. That's from popcorn as well. Senior front end web three developer. That's Tracer. Folks with the new perpetuals product looking for that too. These are all featured on the bankless job site. It's included as a link in the show notes. Go check that out and some of the other positions that are listed there. All right, David, are you ready, man?

• 31:11David Hoffman?

  Oh my God, I'm so ready.

• 31:13Ryan Sean Adams?

  I know you're ready for this. Okay. So the headline here is a tale of two outages. There have been two outages. This week in crypto, chain outages. One, the Solana chain, which we'll talk about. And the second was Arbitrum, which is a layer two that we'll talk about as well. So why don't you take us through a tale of two outages? Let's talk. What happened with Solana this week?

• 31:38David Hoffman?

  Yeah, so Solana had a peak load of over 400,000 transactions per second, which is a lot. And then the @solana status Twitter account says, "Solana mainnet beta encountered a large increase in transaction load, which peaked at 400,000 transactions. These transactions flooded the transaction processing queue, and the lack of prioritization of network critical messaging caused the network to start forking. This forking led to excessive memory consumption, causing some nodes to go offline. Engineers across the ecosystem attempted to stabilize the network, but were unsuccessful. And so as a result of this, a bunch of validators had to coordinate inside of a Discord channel, I believe, to coordinate a restart of the network.

• 32:21David Hoffman?

  And then as a result of that, the Solana was down for over 18 hours. I think it was something like 18 to 20 hours. And then once some sort of coordinated consensus mechanism to restart the network checkpoint and restart the network. Again, I'm not a distributed systems developer, but they were able to get that Solana network started up and running again 20 hours later. So it was down for over 20 hours, which is kind of crazy.

• 32:47Ryan Sean Adams?

  20 hours down. And when you say down, we're not talking about degraded. We're talking about like dead, down, didn't exist.

• 32:54David Hoffman?

  Your transactions aren't going anywhere. No one's listening to them. Like your money's frozen. Like there's no withdrawals, right? Right?

• 33:02Ryan Sean Adams?

  Nothing can happen, right?

• 33:03David Hoffman?

  Frozen. The state is frozen.

• 33:05Ryan Sean Adams?

  And what had to happen is they basically had to eventually reboot the thing. And I think it required like the support of 80% of all of the validating stake, validating nodes. And that was kind of the coordination that you're talking about. We'll get to some takes there, but like, I will say, never in my history in crypto have I seen a chain worth like 40, 50 billion dollars, tens of billions. of dollars be down for 20 hours like that's pretty unprecedented has never happened at that level of value people have tried to compare this to the ethereum Shanghai tax in 2016 we got to talk about that one I don't think the comparison is apt but before we do let's

• 33:48Ryan Sean Adams?

  talk about we said a tale of two outages a second outage happened at just about the same time and I put outage in kind of quotes because it's kind of an outage but also kind of not but tell us what happened to arbitrum David

• 34:00David Hoffman?

  yeah so arbitrum the layer two to ethereum had their sequencer go down so another interesting thing like I said at the beginning it's interesting that both of these happened really really closely to each other I think within the same like hour or maybe two hours and it had both had to do with the sequencers for both arbitrum and Solana one of Solana's big claims to fame is it has this like natural sequencing built into the L1 Ethereum doesn't have that it sequences things it allows whoever proposes the block to sequence the transactions as they see fit but arbitrum has a centralized sequencer a centralized sequencer almost kind of is what a rollup is and that part broke down and so the report from arbitrum says all transactions that had been had been

• 34:43David Hoffman?

  accepted by the sequencer were included and not reordered transactions accepted by the sequencer between 1013 and 1014am were reassigned a timestamp when the sequencer returned online at 1059am and so arbitrum was down for about 45 minutes and they say that the root cause of the downtime was a bug causing the sequencer to get stuck when it received a very large burst of transactions in a short period of time almost very similar to what happened with to Solana and then the issue had been identified with a fix and had been deployed and so there's some takeaways that we should we should talk about with the whole arbitrum being out

• 35:20Ryan Sean Adams?

  Yeah, I'm actually glad, I'm kind of glad, David, this happened at the exact same time.

• 35:24David Hoffman?

  This is great. This is such a great test.

• 35:27Ryan Sean Adams?

  It's a great learning lesson, I think, for the ecosystem. So we can say Exhibit A, what happens when a Layer 1 sort of has a complete outage and requires a restart from a coordinated set of validators? And then Exhibit B, what happens when a Layer 2 goes down as well? So maybe let's talk about the contrast here. One interesting contrast is when the Arbitrum outage was a little bit different. So sending Layer 2 transactions was not possible, so you couldn't transact on Layer 2. But Ethereum wasn't down, so you could actually still get some transactions through on Arbitrum in sort of a roundabout way, as I understand. Why don't you take us through, when Arbitrum failed, how did it fail?

• 36:12David Hoffman?

  Right. So when Arbitrum failed, the Arbitrum Sequencer stopped listening to incoming transactions. And so all the benefits of the L2, all the scale, all the throughput, all the low gas fees, we lost that. That's what we lost. The Sequencer stopped hearing transactions and stopped writing them to the Arbitrum blockchain, the Arbitrum L2. But the whole point about rollups is that there is a natural fallback to a rollup that doesn't require you using the Sequencer. And so because of the rollup design, users could just make an L1 transaction and update the state of the Arbitrum L2 themselves using

• 36:53David Hoffman?

  the main chain. It's like a user-only backdoor to Arbitrum. If, for whatever reason, the Sequencer is not listening to transactions, maybe they're censoring you specifically, but not no one else, it doesn't matter, because you can just go through the door that is on the Ethereum L1. So your funds are never at risk. This is why people like L2s. And so, the moral of the story is that when the Arbitrum Layer 2 breaks, the worst-case scenario is that it just returns to being an Ethereum L1 smart contract that you engage with on the Ethereum L1. So all you got to do is have some Ether on the L1 to make a transaction to the Arbitrum smart contract to say, "Hey, your shit's broke," excuse my language, "give

• 37:36David Hoffman?

  me my money back." And then, because Ethereum operates by that code, because of the nature of rollups, you get your money back. And so your money's never frozen.

• 37:46Ryan Sean Adams?

  I kind of get this visual, David, where like I, you know, thinking in terms of like, imagine Ethereum is just this bubbled city in the cloud, right? And then Arbitrum is another bubble city in the cloud, right? And but it has this bridge, this bridge that just essentially cannot be destroyed unless Ethereum, the city of Ethereum is totally destroyed too. So if Arbitrum goes down, if Arbitrum's on fire, if there's chaos in the city, then that bridge cannot be destroyed. So you always have the ability to like withdraw funds, you know, do some, some kind of transactions across that bridge as well and exit. In the case of Solana, like there's no bridges right there that are enforced by Solana. So like Solana's down, the entire Solana network is down.

• 38:31Ryan Sean Adams?

  There's not the case with Layer 2. It's Layer 2 just fails gracefully back to Ethereum. So it's kind of a question of like, was Arbitrum totally down, right? And I think Daniel from the Arbitrum team actually makes that case. Like practically speaking, it kind of was for the average user. But he says, if I want to get nitpicky and pedantic, I could also argue that it's not. And he gets very nitpicky and pedantic in the whole thread and we're not going to go through it. But what's the TLDR here?

• 39:01David Hoffman?

  Yeah, the TLDR is that there are three ways to get a transaction in, out of Arbitrum. One of them is like the normal case where like as a normal operating L2, you send your transaction to the sequencer and then the sequencer updates the Arbitrum state, gives you a little receipt and then yay, we can go beyond our merry way. We are actually going to have to scroll down because I'm going to have to read the, the second way to get in. But this is going to be just a little learning, a learning lesson. And so here, here he says, meet the sequencer. That's, that's the thing that orders or transactions accepts the transactions right to the Arbitrum's chain. But the case number two is that when a message from the Ethereum L1 can also be included into the sequencer.

• 39:43David Hoffman?

  And so you can actually write to the Arbitrum sequencer, even if the sequencer is still live, by writing a transaction to the Ethereum L1. There, usually you wouldn't do this. Sometimes there are some specific scenarios, but the transaction gets added to the delayed inbox. And the inbox is like the thing that is where all the transactions go before it gets added to the Arbitrum chain.

• 40:08David Hoffman?

  And like the most common case here is like when you just straight up add money to your Arbitrum account, that's when you make an Ethereum L1 transaction, put it into the Arbitrum inbox. Within 10 minutes, it shows up on the Arbitrum L2, and that's when, one of those cases that you would do that. And then the third case is what we were exactly talking about, is that if a message has been sitting in a sequencer's inbox longer than what is the code for max delay, which I believe is 10 minutes, any user can call a function called "force inclusion", which pops out the message out of the delayed inbox and puts it into the user's account on Ethereum L1. And so, this is a fantastic thread if you want to go into the, in more

• 40:52David Hoffman?

  nitty-gritty details about how a Layer 2 rollup is constructed, but because there's three different ways, and the worst-case scenario is always the fallback of like, there is always user sovereignty if the sequencer isn't doing what they say they were, that is why rollups are so magical.

• 41:10Ryan Sean Adams?

  There you go. All right, David, let's get some takes around the crypto Twitter sphere to round this picture out. So, this is a take from Hudson Jameson. I first want to maybe read the take from Anatoly.

• 41:23David Hoffman?

  But wait, before you do, I do want to say that what we are talking about with Solana versus Arbitrum, it is decently apples to oranges in the sense that Solana is a Layer 1 and Arbitrum is a Layer 2. So there is that difference there. And so, we are actually going to go into a scenario about like, well, what if we were to talk about Layer 1 to Layer 1, to talk about apples to apples? So let's go into Hudson's take.

• 41:44Ryan Sean Adams?

  Yeah, so Anatoly said this, he's the CEO, one of the co-founders of Solana, basically comparing what happened to Solana in that 20-hour outage to the ETH Shanghai attacks. The ETH Shanghai attacks, essentially Ethereum was a DDOS attacked for like, a series of days, like weeks, and had to like, implement some emergency patch to mitigate the threat of this attack. And Ethereum was not down during that time, but it was effectively like, unusable. Very hard to use because you couldn't get your transactions through. And so Hudson Jameson is a former ETH coordinator, former Ethereum Foundation.

• 42:29David Hoffman?

  Community manager.

• 42:30Ryan Sean Adams?

  Community manager. And he's saying essentially that this is not at all comparable to the Shanghai attacks. David, why don't you read parts of his thread?

• 42:40David Hoffman?

  Yeah, so Hudson says, what happened today to Solana is not the same thing that happened during the Ethereum Shanghai attacks in 2016. But I understand why people think so, so a thread. Hudson says, both attacks were DOS attacks meant to halt block productions. So that is similar. The big difference is that Ethereum blocks never stopped producing during the attacks because of a multi-client design that Ethereum has. I believe there were two major Ethereum clients at the time of Shanghai attacks. I think there was a third, but it was more insignificant.

• 43:10Ryan Sean Adams?

  There was Parity and Geth.

• 43:11David Hoffman?

  Parity and Geth. And Geth was the one being attacked during the Shanghai attack. So if you had a Geth node, you would have a real hard problem getting a transaction in. But if you had a Parry node, it was fine. Blocks still were being produced. Hudson continues in saying, I do not like the rhetoric and comparisons to Ethereum that Yoke. How do you pronounce his name again?

• 43:34Ryan Sean Adams?

  Anatoly.

• 43:34David Hoffman?

  Anatoly, the CEO of Solana Labs, basically the CEO of Solana.

• 43:40David Hoffman?

  And others have made throughout the day on Twitter because it feels disingenuous and feels like it minimizes the issue Solana faced. I also don't like, some people in the Ethereum community are bashing Solana for having to manually restart. Ethereum could have just as easily been in a similar position if the merge had a bug. All that being said, I hold no ill will towards Solana and wish them the best. So the important differentiator is that Ethereum's multi-client design, which has saved Ethereum multiple times and also has caused Bitcoin to have to have to roll back due to an inflation bug back in 2011 or 2013. Because Bitcoin also only has a single client design. Solana, like Bitcoin, only has a single client design. And the whole point about having a multi-client design is that it promotes decentralization.

• 44:25David Hoffman?

  There's more than one way to interpret this. Spec of Ethereum and to apply it and to have consensus with other clients. And so worst case scenario is that making a transaction on Ethereum just becomes difficult. Also, because of Ethereum's multi-client design, the Shanghai attacker had to spend a ton of money, a ton of ether to continue to DDoS the network.

• 44:47Ryan Sean Adams?

  Millions of dollars. Imagine how much money that's worth now.

• 44:50David Hoffman?

  Right, yeah, god, billions. And now it would have been a billion dollar attack, right? So, so long as the blockchain keeps on working, attackers keep having to have economic costs to attack the blockchain and a multiple spec design, which Ethereum now, the Ethereum 1 chain has four specs, four different specifications, and Ethereum 2 has, I think, five or six. Largely, one of them largely-

• 45:14Ryan Sean Adams?

  You mean clients, right?

• 45:14David Hoffman?

  Excuse me, yes, clients. And one of them being prismatic, which is very significant, but it has like five more other ones as well. Having multiple clients is anti-fragile and it is a significant difference measure of decentralization that Ethereum has almost over every single other blockchain. There is no other blockchain that has the level of client diversity that Ethereum has, which is directly representation of the decentralization that Ethereum has.

• 45:41Ryan Sean Adams?

  Yeah, so I think like Hudson's point is like, that's a false equivalence. You can't compare, but he also makes the point that, you know, to be fair, something really bad could happen to Ethereum one day, right? And some sort of social coordination might be required. I just imagine it would look a little bit different than getting a group of validators into kind of a Discord channel and having a conversation rolling out and update.

• 46:07David Hoffman?

  But I'm also not ready to take that point. Hudson says like, this could have, this could have happened during the merge or this could have happened. It hasn't though, and that's a very important takeaway. It has not happened to Ethereum.

• 46:19Ryan Sean Adams?

  It hasn't. It hasn't.

• 46:21David Hoffman?

  Ethereum, like, if you put a big asterisk on the Shanghai attacks, as in like, it was gonna be really difficult to get your transaction in. Other than that, Ethereum has had 100% uptime. Even during the Shanghai attacks, it was still producing blocks. There has not been a day that has gone by where Ethereum has not been up.

• 46:37Ryan Sean Adams?

  Man, even the Shanghai attacks, like, network value of Ethereum at that time, I don't know, it was like, uh, $300 million.

• 46:45David Hoffman?

  Right, right.

• 46:45Ryan Sean Adams?

  $500 million, right? Like, you know, in the first year of its birth. I know Solana is relatively young, like, three years old or something like that, but like, it's worth $50 billion.

• 46:57David Hoffman?

  Right.

• 46:59Ryan Sean Adams?

  Right?

• 46:59David Hoffman?

  It's a different beast.

• 47:00Ryan Sean Adams?

  It's a different beast. Uh, there's another argument that was put forward, I think, um, from people, and I, I felt like this was sort of a little gaslighty as well. Uh, so this is Kyle, Kyle Samani saying, hey, it's just in beta. That's why Solana's in beta. This sort of thing is to be expected. It failed gracefully. No catastrophic problems. Like, I don't even know what to do with those three points, right? It did not fail gracefully. It fell over and died.

• 47:28David Hoffman?

  It was a-

• 47:29Ryan Sean Adams?

  To be honest with it.

• 47:30David Hoffman?

  Absolutely catastrophic.

• 47:32Ryan Sean Adams?

  This is the most catastrophic-

• 47:33David Hoffman?

  It's as bad as it gets.

• 47:35Ryan Sean Adams?

  Yeah, I mean, barring maybe inflation bug, maybe, maybe that's worse, right? But this is pretty close. And then saying it's in beta, if you're in beta, you don't get to have like, final product level valuations, in my opinion, right? Like, beta product, beta valuations, right? So like, it's hard for me to justify, uh, the valuation of, of Solana when, like, when you see something like this. Uh, I mean, just personally, right? Like, this is not, uh, I, I tweeted at the time, by the way, I think a lot of people were, um, you know, knocking Solana down when the engineers and validators were hard at work trying to restore it, right?

• 48:19Ryan Sean Adams?

  And, you know, at that time, it's just like, hey, everyone, hold on, like, let's just let the dust settle. A lot of talented engineers are working hard to get this blockchain back up. Let's wait for the hot takes and critical takes until that's done, right? Well, now it's done. And I think the crypto industry needs to have a serious look at what happened. Uh, and like the, why it happened. I mean, uh, and- And really like, take a hard look in the mirror at how we're valuing these various chains. Are we valuing them? Like, what level of decentralization are we valuing inside of these chains? What level of maturity are we valuing these chains? And like, this

• 48:59Ryan Sean Adams?

  should really, this is new information. So it should reflect how we perceive the market. I think this is a big incident. I think this is totally underplaying it from Kyle here. What's your take?

• 49:10David Hoffman?

  Yeah, I think Kyle's being one of the most irresponsible people on Twitter over the last week or so. Because like, this is the first time I've ever heard him say that Solana is in beta and like, we should expect problems like this. That is absolutely ridiculous. Especially when people are putting meaningful amounts of their money and investments into this thing, saying it failed gracefully. It's just, I think it's completely irresponsible. And I think he is putting a terrible branding on this whole entire industry.

• 49:37Ryan Sean Adams?

  Yeah, well, absolutely. I, you know, it's, I think the response from some people on the, I guess, the Solana side has been what's, what surprised me. And look, this is the bottom line for me. Actually, Gavin Wood from Polkadot actually nailed it to me, right? So if you're to take sort of one thing away from this incident, to me, it's this. He said, "Events of today in crypto just go to show that genuine decentralization and well-designed security make a far more valuable proposition than some big TPS numbers." That's transaction per second numbers, "coming from an exclusive and closed set of servers. If you can't run a full node yourself, then it's just another bank. If you can't run

• 50:20Ryan Sean Adams?

  a full node yourself, then it's just another bank." I think sometimes people are critical of us even, David, calling us like maximalists of one shape or another, right? Like, guys, the show is called Bankless, okay? We are here to escape the banks. One vector of attack is a blockchain, a group of validators, a group of crypto banks can become the new banking system for you. I personally don't want crypto to evolve in that direction. So I'm going to fight for principles of decentralization. If you can't run a full node, then it's just another bank.

• 51:03David Hoffman?

  If you don't have a copy of the ledger, then you are trusting somebody else with the ledger.

• 51:09Ryan Sean Adams?

  It's just to me, David, some of these things are like, you know, unnegotiable, right? So Call Solana, maybe it's a fintech platform. That's cool, right? Like PayPal's a fintech platform, Venmo's a fintech platform. It's kind of a new open fintech platform model. It has not reached the level where it's decentralized enough. If I, if we can't run a full node, then it's still a bank. It's still fintech. It's not quite DeFi. So I think the events of this last week have, have shown this maybe to more people. I don't know that that's going to be reflected in the immediate market price. Cause look, the market price is in narratives. It doesn't necessarily price in fundamentals.

• 51:51Ryan Sean Adams?

  But this is something that if you are in crypto, you absolutely should be paying attention to. Anything else we should say on this, David?

• 51:58David Hoffman?

  Yeah, I definitely want to, there's been a, just a growing frustration out of the Ethereum community lately who has like said, given out warnings about something like this. We've seen so many chains, just like fork Ethereum or like do something similar. Except what they would do is they would just increase the block size and increase the throughput.

• 52:17Ryan Sean Adams?

  Finance chain, just earlier this year.

• 52:19David Hoffman?

  We saw Binance chain halted, Avalanche halted. So far, every single chain that has like tried to become an Ethereum killer by just increasing throughput has halted at some point in time. And there's a reason why we don't just beef up the L1. Because like, like Gavin Wood says here, where he says, a more just a well-designed, excuse me. Events in today in crypto just go to show that genuine decentralization and well-designed security make a far better value proposition than some big TPS numbers. We get big TPS numbers from Arbitrum and Optimism. Our optimism just doubled their capacity. Our Arbitrum is instantaneous. We get big TPSs on layer twos and we have the decentralization and security

• 53:04David Hoffman?

  of a extremely conservative and consolidated and efficient base layer L1 that we can all run the nodes on. And so so many of the, in the Ethereum Community members, especially when the Sol price is just pumping through the roof. And it's really, really hard to like tell, like teach these lessons. No one wants to have their bags that are performing really, really well. Getting narked on by quote unquote, a bunch of ETH maxies. Except that everyone is coming into all the Ethereum people and saying like, "Hey, you guys are just being ETH maxies because you don't like any other chain." It's not Ethereum maximalism, it's decentralization maximalism. And so I tweeted out earlier, I said, "Anyone who labels a decentralization maxi, of which I would call Ryan, of which I would call myself,

• 53:47David Hoffman?

  instead as a toxic maxi just for not talking positively about other chains that have sacrificed decentralization is actually the person being toxic, right? Especially if you are promoting a chain that is actually not decentralized as the base chain and you're just calling them a toxic maxi. It's just wrong. It's just wrong. You have to protect decentralization. That is the whole reason why we're here. This whole industry is built on decentralization.

• 54:12Ryan Sean Adams?

  No shortcuts, guys.

• 54:13David Hoffman?

  No shortcuts.

• 54:14Ryan Sean Adams?

  Why take shortcuts? We don't need to.

• 54:16David Hoffman?

  I mean, just wait a little bit.

• 54:19Ryan Sean Adams?

  Cryptography magic is coming. All of this stuff is going to happen in time. Let's not take shortcuts in the near term. I think that's the message. David, here's what's ironic. While this was going on, Ethereum was actually being attacked.

• 54:33David Hoffman?

  There was three attacks. It was crazy.

• 54:35Ryan Sean Adams?

  Yeah, so like, people don't know this because...

• 54:39David Hoffman?

  Nothing happened.

• 54:40Ryan Sean Adams?

  Actually, nothing happened. And part of the reason why is actually one of the nodes, one of the smaller, the Nethermind Ethereum client, ETH1 client node was taken down. I think this was some sort of a DDOS attack.

• 54:54David Hoffman?

  Right, so somebody was mining empty blocks for 550 blocks, which had invalid proof of works, and then they published them all at once, right? And so blockchains, they operate by going on the longest chain. Somebody was mining secret blocks, published them all at once in order to like get ahead of the actual Ethereum chain. That caused some clients, some nodes who were on the Nethermind client to go off and start propagating blocks on this new fake bad chain. And so again, another lesson in... Client diversity and even with client diversity, not even all of the nodes of Nevermind Client went with a new blockchain, right? And so this is what happens when you have really talented client developers, hyper focused on security and decentralization at the base chain.

• 55:39David Hoffman?

  Attacks don't work. It's great.

• 55:45Ryan Sean Adams?

  Yeah, absolutely. That's what happened. Nothing happened essentially when it was being attacked. And that's a good thing. I mean, attacks are going to happen, you know, cross your fingers, knock on wood.

• 55:58David Hoffman?

  Attacks should happen. That's the whole point is you can attack it as you see fit. Like I can't go attack Wells Fargo, but like that's because of they have centralization as their security. You're supposed to go attack Ethereum.

• 56:11Ryan Sean Adams?

  Have you ever tried to attack a bank, David?

• 56:13David Hoffman?

  Yeah, I started this podcast with you.

• 56:17Ryan Sean Adams?

  We're attacking it on the meme layer, guys. All right, enough said. A tale of two chains, a tale of two outages. That was it. David, let's talk about some other Ethereum stuff. Ernst & Young, top four accounting firm, like big name, the professional services realm. They have just selected Polygon to scale their enterprise blockchain products. Here's what I think that means. So people are confused about that. ENY, they're big Ethereum proponents, big crypto proponents as well. They've been working on like some ZK technology, specifically enterprise technology for like for enterprises in the in the privacy space as well.

• 56:54Ryan Sean Adams?

  So their whole thing is, hey, a lot of enterprises can't use the public chain because they want their valuable information transactions to remain private. So they went off and they've experimented with some kind of ZK rollup tech. Now they're folding that into the Polygon family. So Polygon has not only its proof of stake chain, that's its side chain, but it also has a ZK chain, which is Polygon Hermes. It also has a plasma chain and now they're adding this Ernst & Young chain into their kind of their API suite. Polygon's kind of a Swiss army knife, I suppose, for all of these various side chains and L2s.

• 57:34Ryan Sean Adams?

  And I think what this could become, David, is like an enterprise rollup chain that Ernst & Young is rolling out. So excited to see how that develops and a really cool partnership in the making here.

• 57:47David Hoffman?

  This reminds me of the Goldman Sachs, what was their, what was their private blockchain called? Quorum, Quorum, right. It was a fork of Ethereum. It was enterprise for, just for Goldman Sachs and their customers. They did their own kind of internal testing. There was also like the IBM Hyperledger as an enterprise blockchain. And now we have the EY enterprise blockchain, also with privacy, built as a rollup on top of Polygon. This just reminds me, Ryan, of the protocol sync thesis. Everything gets layered on top of Ethereum, and the benefits of plugging into a public, open network can be as wide and large, or not, as you so, as you see fit. Now EY can tap into main L1 Ethereum as much or as little as they like. They have full

• 58:31David Hoffman?

  control, and they don't impact any of the other L2s or the Ethereum L1. They get to do it.

• 58:38Ryan Sean Adams?

  Yeah, absolutely. This is like the local area networks, like the internal networks, plugging into the wide area network, plugging into the internet. That's what's going on here. Vitalik Buterin was named one of the top, one of the 100 most influential people of 2021, according to Time Magazine. He was named that by Alexis Ohanian. He is one of the co-founders of Reddit, and Alexis gives some reasons why he nominated and named Vitalik as the 100 most influential people in 2021. Glad to see Vitalik getting some recognition here. I think it's going to be kind of a legendary name. In fact, we have a podcast with Vitalik coming out next Monday.

• 59:18Ryan Sean Adams?

  That's a fantastic podcast where we talk about, among other things, the importance of being able to run a node for yourself. So tune into that podcast. Congrats to Vitalik. Also, I believe this is the, the senior editor?

• 59:32David Hoffman?

  No, the president of Time Magazine.

• 59:34Ryan Sean Adams?

  President of Time Magazine.

• 59:36David Hoffman?

  Right. With a dot ETH name, retweeting, saying, "Congratulations to Vitalik Buterin for being named 2021 Top 100 Influential People." So, president of Time Magazine with a dot ETH, talking about ETH stuff. So that's pretty cool.

• 59:49Ryan Sean Adams?

  Yeah, very cool. Or what's this? Let's talk about the second news item of the day. So we're in NFT land, moving from Ethereum to NFT land. And why don't you talk about this story? It appears like it's a situation where an internal employee of OpenSea has front run the best OpenSea NFT deals, the deals that were going to appear on the front page. What happened here, David?

• 1:00:14David Hoffman?

  Yeah, so this all got kicked off by this one Twitter account, ZuwuTV. He says, hey, OpenSea, why does it appear that Nate Chastain, who is the head of product, I believe, senior product at OpenSea, so a pretty senior position, has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front page hype spike for profits, and then tumbles them back to his main wallet with his Punk on it. So going back to the reference between, behind identity and NFTs, everyone knows who your Punk is. And so then this account did a little bit of more due diligence. So if you want to find out like the analysis behind this, how this was discovered, it's available to you. And apparently this was legit because it got picked up by the block,

• 1:00:59David Hoffman?

  which, and the block writes, "OpenSea confirms executive used insider knowledge when buying NFTs." So this is a reminder that OpenSea is not a DeFi application. It is a company built on Ethereum. And so Nate Chastain has been accused of front running drops and from profiting some ETH by first buying and then selling right into the hype. Yeah, that's not a good look.

• 1:01:25Ryan Sean Adams?

  Bummer. I mean, OpenSea's credit has responded and said that they are taking this issue very seriously. I'm not sure what immediate actions they will do. But it's an important reminder that any place there's an aggregator in these systems, you have the opportunity for insider information, insider knowledge, the ability to front run and put yourself with an unfair advantage. What worries me a little bit, David, is this is exactly the sort of thing regulators will point to and say, well, crypto is unfair, right? And we need more regulation, maybe stringent regulation to come down on this space. And my worry is not that like,

• 1:02:04Ryan Sean Adams?

  My worry is more that dumb regulation will come down on the back of this, right? So like, one example of smart regulation, David, would be like, if you are an employee at OpenSea, maybe you have to like publicly declare your ETH accounts that trade any NFT activity, right? So it's all public, it's all visible, right? Something stupid that could come down the pike is like, no NFT or anyone who creates a DeFi product, protocol is allowed to have an ETH address or is allowed to trade on these platforms, right? Or has to declare every single trade like-

• 1:02:39David Hoffman?

  Or OpenSea has to become a broker or something.

• 1:02:41Ryan Sean Adams?

  OpenSea has to become a broker, exactly, right? So there are good ways, regulation could influence this, but there's also some bad ways. But I think this is potentially a clear case of front-running and, you know, could widen the case for why regulators actually should get involved in this space. I'm a little bit worried about that.

• 1:03:02David Hoffman?

  Yeah, so I guess as a PSA to all people with positions of power around DeFi apps or companies, like, yo, we as an industry are getting looked at. We all have a responsibility to not have the shadowy super coder branding actually fit, and instead be good stewards and self-regulate and be responsible. Like Nate gets his day in court, metaphorical day in court, no one's actually taking him to court. But like, dude, come on, man, we got a lot to lose, dude, you're letting us all down.

• 1:03:36Ryan Sean Adams?

  Yeah, and I think every company should get serious about disclosures. Use the transparency of the chain to make this stuff out in the open, certainly. So hopefully lessons learned in DeFi in this, we'll see how it goes. David, what's this, what's happening here? This is an NFT on Arbitrum?

• 1:03:54David Hoffman?

  Right, yeah, so kind of a coincidence little announcement or release right after this is that, somebody says, somebody tweets out, Arbitrum needs an NFT market now, completely unrelated to what was going on with OpenSea. So they've decided to build one called Small Puddle, S-M-O-L Puddle, which is a ERC 721. which are NFTs market on Arbitrum with a decentralized order book and 99% client-side power. So it's a decentralized NFT marketplace on Arbitrum. So funny little timing in, in, on theme with JPEG summer, layer two summer, and the need to have a decentralized NFT marketplace.

• 1:04:33Ryan Sean Adams?

  Look at these RB punks. You have one of these yet, David?

• 1:04:36David Hoffman?

  I do not have an RB punk. No.

• 1:04:38Ryan Sean Adams?

  Are these like, uh, complete clones?

• 1:04:40David Hoffman?

  Yeah, those have got to be complete clones. Yeah.

• 1:04:43Ryan Sean Adams?

  So.

• 1:04:43David Hoffman?

  Cause like, look, you can buy one for .01 ETH, which is how you know.

• 1:04:49Ryan Sean Adams?

  That's how you know. That's what's being listed on small puddle right now. Other things in the future, I'm sure. Um, also this David Sotheby's is getting more into NFTs. A collection of board ape NFTs just broke Sotheby's estimates with three days to go. I guess $19 million worth of board apes via Sotheby's have, um, have already been achieved. That's the, that's the current bid. Might go higher than that, man. Sotheby's, these art houses, they are all into NFTs. Like it's over. It's done for them. They've jumped down the crypto rabbit hole and they're here to stay.

• 1:05:22David Hoffman?

  No, that's exactly right. And this is coming right on the heels of Steph Curry and the chain smokers putting board apes as their profile pictures. Uh, and man, like Christie's is doing NFTs. They were Gary V NFTs on Chrissy's this week.

• 1:05:34Ryan Sean Adams?

  He's got a punk.

• 1:05:35David Hoffman?

  Jason Derulo. Uh, God, I remember that. I haven't heard that name in a while. Uh, but yeah, I got a red haired, uh, uh, earring punk. So that's pretty cool. Oh, and a goatee.

• 1:05:46Ryan Sean Adams?

  More celebrity sightings. Uh, let's talk regulation really quick. Apparently fidelity is really pushing the SEC for Bitcoin ETF approval, uh, telling them that it is time when you have a major bank like fidelity, an insider telling the SEC that it's time for Bitcoin ETF.

• 1:06:04David Hoffman?

  Yeah.

• 1:06:04Ryan Sean Adams?

  I wonder if that's going to actually move them. Um, Ralph Paul said Bitcoin ETF in October. So he said, this is back in August. I don't know what he knows, but it's been time for a long time. I just don't know that the SEC thinks it's time. And Gary Gensler has been increasingly critical of crypto writ large without extending any olive branches to this industry. So I guess we'll see what happens.

• 1:06:30David Hoffman?

  Yeah, gosh, I remember asking Hester Pearce, her thoughts on like every day that the SEC doesn't approve a Bitcoin ETF. The conspiracies about this becoming about protecting the dollar and not rewarding crypto becomes a little bit more valid. And I'm going to go ahead and say that like if this Bitcoin ETF doesn't get launched by the end of the year, I think it's

• 1:06:51Ryan Sean Adams?

  This year.

• 1:06:51David Hoffman?

  It's gotta be this year.

• 1:06:52Ryan Sean Adams?

  2021 is the year.

• 1:06:53David Hoffman?

  It's gotta be this year, or it's a political statement by the SEC.

• 1:06:57Ryan Sean Adams?

  They're making some political statements right now, David. We should talk about that in just a minute. I guess before we do, we should note that MicroStrategy has dollar cost averaged into Bitcoin again.

• 1:07:08David Hoffman?

  Hey, it's been a while since we've done one of these.

• 1:07:11Ryan Sean Adams?

  Like a week, you mean? Two weeks?

• 1:07:13David Hoffman?

  No, I said at least three weeks, I think.

• 1:07:14Ryan Sean Adams?

  I don't know, dude. You've said it so many times. Every month, at least, MicroStrategy, Michael Saylor, dollar cost averaging. They bought another 5,000 Bitcoin.

• 1:07:23David Hoffman?

  Adding 4% to their treasury in Bitcoin terms. It's a small purchase.

• 1:07:27Ryan Sean Adams?

  5.1 billion dollars worth of Bitcoin they hold now.

• 1:07:30David Hoffman?

  Where do they get all this money from?

• 1:07:32Ryan Sean Adams?

  I mean, they bought some low, but they're just like, they're raising it. Junk bonds, baby. That's the way to do it. It's arbitrage opportunity.

• 1:07:39David Hoffman?

  Crazy.

• 1:07:40Ryan Sean Adams?

  Let's talk regulation again. So there were some hearings in the Senate. Elizabeth Warren, Gary Gensler, talking about crypto. David, you want to pull out some key quotes from this exchange?

• 1:07:52David Hoffman?

  Yeah, yeah. Gary Gensler and Elizabeth Warren eyeing Coinbase. And Elizabeth Warren says, has criticized crypto's claims to financial inclusion, saying, "We hear a lot about how crypto is all about financial inclusion." Oh, glad you finally heard this, Elizabeth. She said, "I want to test out with you if crypto is an improvement over the financial system." So like, I think what we're actually witnessing is like Elizabeth Warren doing her own little flavor of going down the crypto rabbit hole. So, yeah, there, yeah. And then she also says that, no, go ahead, go ahead.

• 1:08:23Ryan Sean Adams?

  She's very, she's very concerned, it appears to me, about gas fees on Ethereum. So like, the fact that she's knowledgeable about gas fees now indicates that she has gone a little bit further down the crypto rabbit hole. She referred to DeFi exchanges, I assume something like that. Like Uniswap in air quotes like DeFi exchanges, right? As if DeFi doesn't actually exist. She was very upset with gas fees. The fee to swap between two tokens on the Ethereum network last Tuesday was more than $500.

• 1:08:56Ryan Sean Adams?

  I mean, her, I think her takeaway is like, this is not for retail. This is price gouging. Gas fees are too high. Maybe regulators can fix this. Maybe DeFi is a false, is a farce. Maybe like this whole thing is rotten. I don't know what she's getting at. It's, I think she just doesn't understand the gas markets, right? Like complaining about Ethereum gas markets is kind of like complaining about the price of a barrel of oil. Right? It's a commodity. It's a function of supply and demand. You don't like the cost for a transaction? Don't do the transaction. Or try to find another chain, another like centralized exchange where you can do a similar transaction. It's just a function of supply and demand. It's not, no one's price gouging.

• 1:09:42Ryan Sean Adams?

  And the DeFi, I don't know why that's in air quotes. Like Uniswap legitimately is a decentralized exchange. If you don't believe that, try to take it down. Right? Like, I don't know what's going on here, David, but it's, this is the eye of Sauron. I think starting to veer its, its, uh, its eye on the DeFi industry. And I'm not sure what's going to happen next.

• 1:10:04David Hoffman?

  Yeah, no complaining about $500 gas fees is complaining about decentralization. Like, I don't want to pay it either, but like, I also want to be bankless. And I think Elizabeth Warren just has a bunch of dots that she hasn't connected yet. Another article that came out was in Business Insider, which was also going, going on about this. Where Elizabeth Warren says, advocates say crypto markets are all about financial inclusion. She said to Gary Gensler. So this is two articles about the same subject. And then Elizabeth says, but the people who are most economically vulnerable, all the ones who are, are the ones who are most likely to have to withdraw their money the fastest when the market drops. Does this sound like a path to financial inclusion to you? And like, I'm just so confused. It's like, I run, I watched.

• 1:10:49David Hoffman?

  Like gas spikes up and down during market volatility and like I have no need to actually like run and go do something. The only people that need to go run and do something during times of market market volatility are traders who got scared. Or people who are over leveraged, which we shouldn't even consider that as like typical financial activities. That's also just another form of trading. And so like Elizabeth Warren, I think she thinks this is some sort of like run on the banks like, oh no, like the the sky is falling. I gotta go get my money out. It doesn't work like that. Your money is always there. That's the point. Uh, and like, so she's worried about like these blips of like really high gas prices and like people not being able to access their funds. Elizabeth Warren, banks are closed 80% of the time.

• 1:11:33David Hoffman?

  And so like, just because like you can't for a brief moment in time where you price out of the gas markets. Like at least Ethereum is up on holidays, right? Unlike the financial system and at least it doesn't have, according to a quote from, I will quote Kathy Wood. An unhinged monetary policy, uh, which is another like barrel, which I won't open today.

• 1:11:54Ryan Sean Adams?

  Yeah, absolutely. And, uh, the last thing I'd say, I know Elizabeth Warren listens to the show on a regular basis. Last thing I'd say to Elizabeth Warren is like, hey, we're, we're working on it, right? The entire, you know, blockchain scalability thing, that's what Ethereum has been working on for the last five years, right? So Arbitrum, the rollups that we're talking about, you know, ZK, this is all being worked on and we're trying to scale this industry. So come help us, don't stop us. It's going to lead to more financial inclusion. We've got some shared goals here. I hope they can see that. Maybe David, there's a sliver of hope for me that her trip down the crypto rabbit hole. Actually, she finds something interesting here and she finds something that that she's aligned on.

• 1:12:38Ryan Sean Adams?

  And, you know, we'll see if that happens or not, but at least she's getting educated on it. I just, I just don't know.

• 1:12:44David Hoffman?

  Kind of, kind of. It's like, it is education. She's saying the words like crypto markets, DeFi gas fees, but they're just like the most uninformed takes about those things. Right? And like it just, she just, what she's saying to me is just exuding bias. Like she wants to hate this industry.

• 1:13:03Ryan Sean Adams?

  Yeah, it's definitely unfortunate. We'll see what happens, though. All right, guys, we will be back with the takes of the week and the meme of the week as well. But before we do, we want to thank the sponsors that made this episode possible.

• 1:13:14David Hoffman?

  When you shop for plane tickets, you probably use Kayak, Expedia, or Google to compare ticket prices. So why would you limit yourself to just one exchange when you trade crypto? When you make your trades, you want to make sure that you're getting the best possible price on your trade and that you aren't paying high gas costs that you could have otherwise avoided. That's why you should be using Matcha. Matcha routes your orders across all the various DeFi exchanges on Ethereum, Polygon, Binance Smart Chain, and gives you the best possible prices without taking any commissions. Matcha has smart order routing that splits your order across multiple liquidity sources if Matcha sees that it gets you better pricing. Trading on Matcha is super easy because it pulls the liquidity for me into a single, easy-to-use platform.

• 1:13:56David Hoffman?

  Matcha also allows for you to make limit orders on-chain, so you can set and forget your DeFi trades, and they will go through automatically while you're away. New to Matcha is an integrated fiat on-ramp, so you can purchase crypto directly with your credit or debit card and have that fiat be instantly traded for any token that has liquidity. When you're making a trade, head over to matcha.xyz/banklist and connect your wallet to start getting the best prices and most liquidity when you trade your crypto assets. Banklist is proud to be supported by Uniswap. Uniswap is a new paradigm in asset exchange infrastructure. Instead of a cumbersome order book system where trades are matched with other humans, Uniswap is an autonomous piece of software on Ethereum, which is what Ryan and I call a money robot.

• 1:14:40David Hoffman?

  No human counterparties or centralized intermediaries, just autonomous code on Ethereum. Input the token you want to sell and receive the token you want to buy. Something brand-new in the Uniswap ecosystem is the Uniswap Grants Program is now accepting applications for grants. We have been saying this for a while, and we'll say it again. DAOs have money and they are in need of labor. If you think that you have something to contribute to the Uniswap DAO, apply for a grant to Uniswap. Just look at the size of the Uniswap Treasury. It's almost $3 billion. If capital is looking for labor, do you have something of value to contribute to the Uniswap DAO? No matter how big or small your idea is, you can apply for a UniGrant at unigrants.org

• 1:15:24David Hoffman?

  and help steer Uniswap in the direction that you think it should go. That's exactly what we did to get Uniswap to be a sponsor for Bankless, and you can do the same for your project. Thank you, Uniswap, for sponsoring Bankless.

• 1:15:36Ryan Sean Adams?

  All right, guys, we are back with the takes of the week. David, let's start with a take from you, and this is a perspective of your apartment like I never get to see. This is pretty cool. What are we looking at here?

• 1:15:46David Hoffman?

  Yeah, we're seeing my apartment from the other angle. But my tweet, it was actually my best tweet ever. I'm surprised how much this blew up. But I tweeted out, "Attention, all right-click savers," which is basically another way to say NFT skeptics. "Why isn't my punk on your wall then?" And I'm super stoked that I got like this 48 by 48 metal punk right over there. And I think-

• 1:16:08Ryan Sean Adams?

  That's awesome, David.

• 1:16:09David Hoffman?

  Ah, no, I'm losing it. Okay, well, okay, there it is. And it's on my wall. And one of the cool things about NFTs that we've been talking about over and over and over again is that NFTs are the new form of art, right? And like, well, it's kind of weird to have a pixelated character on your wall as like art is like it's not really art. But it's like something that I care about and I value, and so I put it up on my wall.

• 1:16:31Ryan Sean Adams?

  I feel like this is more than art, though. This is also like your digital identity. It's become your digital identity, right? So it's also tied into like, you know, a typical art piece that you might put up on your wall is not who you project on your social media. So this is like deeper than that. Is this like having a picture of yourself inside your apartment?

• 1:16:51David Hoffman?

  Yeah, it's a picture of my metaverse self, right? Yeah, so like I was painted as a CryptoPunk and now it's up on my wall. But no, the more important thing is that if, like we keep on saying, crypto's taking over, crypto culture is taking over, crypto culture is tight, and I can't wait for other people to put their Fidenzas on their wall or their Cromie Squiggles on their wall. I think the high-value NFTs, because like, you know, the proportion of what that metal print cost me versus the actual cost of the CryptoPunk is minimal, right? So all of a sudden, there's some decently large incentive to just like, take all of your high value NFTs, which you know are that you're never going to sell, put it up on your wall, make crypto art, real art.

• 1:17:33Ryan Sean Adams?

  Can I ask the literal question of like, why isn't the punk on someone else's wall then? Like, couldn't someone else just put this on their wall?

• 1:17:41David Hoffman?

  Right.

• 1:17:41Ryan Sean Adams?

  Or is that just like, uh, doesn't pass the social legitimacy test? So you're, you know,

• 1:17:46David Hoffman?

  No, like-

• 1:17:46Ryan Sean Adams?

  Total pose and they lose and they wouldn't do it.

• 1:17:48David Hoffman?

  Feel free to put my punk on your wall. I ask you to, please do that. I think it would be really cool if you put my punk on your wall. But the thing is-

• 1:17:56Ryan Sean Adams?

  Advertising your punk.

• 1:17:57David Hoffman?

  Right. Advertising my punk. But also though, like the real, really, the reason why somebody wouldn't put somebody else's NFC on their wall is because like, you don't have the incentive to do that unless you actually own the damn thing. Right? Yeah, that's, that's, that's the difference.

• 1:18:11Ryan Sean Adams?

  For people who are curious about how you did this, like, how did you do this? The mechanics of ordering this?

• 1:18:17David Hoffman?

  Shinyprince.com, uh, which they are going to get a ton of business from this tweet.

• 1:18:22Ryan Sean Adams?

  There you go. Shinyprince.com is how you do it. Let's go to this take from Scott Lewis. The Ethereum community needs to do three things. Number one, embrace side chains. Number two, embrace rollups. Number three, build. That's it. That's it. I think Scott Lewis is saying like, everybody chill, right?

• 1:18:44Ryan Sean Adams?

  Don't attack the side chains. Don't attack the rollups. Heads down. Build. Focus on that. That's it. Ethereum's success is almost guaranteed if the community does that without distraction. And I somewhat agree, right? Like, uh, I don't know what you'd add. Would you add anything to that, David?

• 1:19:04David Hoffman?

  Uh, no, I, yeah, the only thing I would add is I would, I would say that like, I've always kind of thought that more or less Ethereum's design philosophy and also Ethereum's values is what protects it. Um, you can't fork those things. Those things are one of a kind. Uh, and people with those values gravitate towards Ethereum rather than gravitating elsewhere. Anthony Cisano does follow up with a nice addition where he says, well, can I embrace you, Scott? Uh, and I think that's kind of funny because I think the other part about that's missing from this is that, uh, we all got to hang out in real life and establish crypto culture in real life and hang out, uh, which is exactly what I'm doing when I go to Denver, New York.

• 1:19:41Ryan Sean Adams?

  The next two weeks, right?

• 1:19:42David Hoffman?

  Exactly. Exactly.

• 1:19:44Ryan Sean Adams?

  How about this take? So this is from Tiger Swami. This feels like a turning point for Ethereum, ETH asset and crypto at large. What David Hoffman, Trustal State, and myself, Ryan Adams, have been preaching for years is now becoming widely accepted. The genie is out of the bottle. This is in response to our Kathy Wood podcast. And it's cool that the community is seeing that too. I feel like our podcast episode with Kathy Wood from Arc Invest was kind of a major milestone, not for bankless so much. I mean, it was for us.

• 1:20:19David Hoffman?

  It was pretty cool. Yeah, we're happy about that.

• 1:20:20Ryan Sean Adams?

  For ETH, the asset though, right? So like, we've been preaching the same thing for the last two years, three years. ETH is money. ETH is an internet bond. YIP1559 is coming. ETH should have a monetary premium as a store of value.

• 1:20:37David Hoffman?

  DeFi is going to eat the banks.

• 1:20:38Ryan Sean Adams?

  DeFi is going to eat the banks. Laughed at, derided, right? Like, just like, couldn't possibly be true. It's so small, it's never going to happen, right? Now we have a $75 billion fund manager on the bankless program telling us those things, like saying those things, right? And like, I remember my reaction was being surprised when Kathy Wood said, hey, the banks are scared. I was like, what? Are they? And so hearing that come from the other side is a turning point, I think, for Ethereum and for the message of ETH. And I almost feel like, hey, man, not that our work here is finished, but like, a major first chapter

• 1:21:21Ryan Sean Adams?

  has concluded, I think, on this, on this path for DeFi legitimacy and bankless legitimacy. So, super gratifying to see that. I couldn't be more excited. The banks are about to be hollowed out by DeFi.

• 1:21:34David Hoffman?

  One of my, out of the YouTube comments, Ryan, which I usually don't go to that place, but on this particular episode, the YouTube comments were absolutely fantastic. And Tyrion on the YouTube says, at exactly the one hour mark in the podcast, Ryan had the, holy shit, this is actually finally happening moment. It's always sobering to talk to someone outside of your circle. That would generally agree with you and here's some fresh takes. But when these outsiders are saying the same things with a wild conviction, it is a whole different feeling altogether. And that was really like the takeaway of this whole episode. It's like Kathy Wood is telling us that the thesis that we've had is actually happening. Banks are feeling the loss of revenue and she thinks that it's coming from DeFi because DeFi is sucking up all the yield away from the banks.

• 1:22:18David Hoffman?

  That's why we have a podcast called Bankless.

• 1:22:20Ryan Sean Adams?

  It was absolutely crazy and the fact that they discovered this kind of independently as well. It's super cool. David, why don't you take this last take of the week?

• 1:22:29David Hoffman?

  Yeah, Anthony Cisano coming in with my favorite take of the week. And I alluded to this earlier and Anthony said, I'm actually pretty tired of trying to play nicely with other ecosystems or trying to not be, quote, toxic or in parentheses, whatever that means these days. Anthony continues, Solana going offline for 10, over 10 hours and the CEO is on Twitter just futting Ethereum as some sort of damage control. Ties it off with saying it's pathetic and I agree. That's why I was saying like, I am a decentralization maxi. And so if I don't like your chain because it's not decentralized, that does not make me a toxic Ethereum maxi. That means your chains decentralized and you need to look inwards.

• 1:23:09Ryan Sean Adams?

  Let me ask you something, David. What about the people who say, that sounds a lot like Bitcoin maximalist talk. You sound a lot like a Bitcoin maximalist. How do you respond to that?

• 1:23:18David Hoffman?

  Yeah, I was actually talking with Eric Connor on DMs about this, like, yo, Bitcoiners, they are correct in principles. They are, in my opinion, wrong in execution, but their principles are absolutely correct. Small blocks, decentralization, running your own nodes and being able to run your own nodes. A lot of the significant principles that Bitcoiners have are right. For some reason, they're just applying it to the wrong execution, in my opinion. And so like if, if, if I sound like a Bitcoiner because I'm like promoting decentralization and I'm not accepting centralized chains, like I'll take that and run with it because like, hey, there's a reason why Bitcoin is the number one asset in crypto to this date. And that's because it's proven that this market values decentralization.

• 1:24:03David Hoffman?

  Above all others. And so, fine, so be it.

• 1:24:07Ryan Sean Adams?

  Yeah, absolutely, David. That's why I would, whenever people ask me, are you a Bitcoiner? I would say yes, right? Like, I'm a Bitcoiner because I have these Bitcoiner values. I think decentralization is incredibly important. I think Bitcoin maximalists have missed the boat on this whole DeFi thing. But like, the principles are right. Moderate Bitcoin values is how Vitalik has described Ethereum communities, how I would describe it as well. All right, David, that's it. You ready for meme of the week? Or actually, before we get there, I gotta ask you what you're excited about. Yeah, what are you excited about?

• 1:24:36David Hoffman?

  Well, in about 15 minutes, right after we finish up this rollup and I get it uploaded, I am yeeting myself onto a plane to Denver, gonna go hang out, like I said, with Meta Cartel and all the-

• 1:24:46Ryan Sean Adams?

  In real life?

• 1:24:46David Hoffman?

  In real life, with all the-

• 1:24:48Ryan Sean Adams?

  People you've only met in Discord channels, right?

• 1:24:49David Hoffman?

  People who I only know as their Crypto Punk avatars, all meeting up in Denver. Gonna finish up M-Con and then go on a hike on Saturday. And then on Sunday, I'm going over to Mainnet, New York. Gonna shake hands with Ryan Selkis over at M.Sari and attend all the conferences there. And then, of course, go to the Pleaser Dow Dog Party. There's a party that Leighton Cusack from Pull Together told me about. And overall, just have a good time in New York, which, at the end of the day, like, while New York's not really my city, it is kind of the crypto capital of the world, and so it's a fun place to be. And then I'm also excited about my Crypto Punk.

• 1:25:24Ryan Sean Adams?

  That's awesome, man. That's a lot of excitement and gushing from you this week. There's a lot to be excited about.

• 1:25:28David Hoffman?

  Well, there's always a lot to be excited about. So, speaking of, Ryan, what are you excited about?

• 1:25:32Ryan Sean Adams?

  I'm just gonna narrow mine to like, the fact that Arbitrum hit over 2 billion in total locked value is hugely gratifying within like, two weeks of launch, and super exciting. I know last week I said I was excited about Layer 2. This week, I'm also excited about Layer 2. But more specifically, seeing Layer 2s like, meet those thresholds. Layer 2 beat, right? That is the new DeFi pulse. We're gonna watch total locked value on DeFi just grow and swell and get to the hundreds of billions. And I can't wait to look at that every single week on this show. I think it's gonna be, I think it's gonna be really cool to see. So Arbitrum, 2 billion mark, looking forward to 20 billion, then 200 billion, and then 2 trillion.

• 1:26:16David Hoffman?

  And haven't even launched optimism yet. And so, when that comes online, it's gonna have, we're gonna be able to do this all over again. It's gonna be great.

• 1:26:23Ryan Sean Adams?

  Absolutely. Name of the week, David?

• 1:26:25David Hoffman?

  It's time.

• 1:26:26Ryan Sean Adams?

  Let's end with this. What are we looking at here?

• 1:26:28David Hoffman?

  This is a tweet out of Joseph de Long, and this is a picture of, I'll pause for a moment and let the viewer look and try and figure out who this is. It is Stani Kulichov of Ave, along with Paris from IDO, and I actually don't know who the girl in the red is, but they went to some sort of masquerade weird party in a field somewhere, and Stani-

• 1:26:50Ryan Sean Adams?

  It's got like a Mad Hatter vibe, like Alice in Wonderland, something.

• 1:26:53David Hoffman?

  It's a little, it's a little, not cypherpunk. What's the branding of things that like are in the wild, wild west, but they're like-

• 1:27:03Ryan Sean Adams?

  Steampunk.

• 1:27:04David Hoffman?

  Steampunk. It's a little, very, very steampunk. Steampunk-ish. And Stani's got this crazy hat. I think there's a snake on top of it, maybe a dead snake. He's wearing a pinstripe suit. There's a bunch of the crazy costumes here. Okay. And so that's, that's the context. Like, three people, crazy costumes, Stani's looking you right in the eyes, and Joseph de Long tweets out this photo and says, "You apply for this loan. This guy walks up and locks eyes with your girl. What do you do?" And the point is, is that, well, maybe I don't know if this is crypto culture, but this is a crypto guy doing cool things. And so I'm going to go ahead and say, the thing that I always say, which is that crypto culture is tight.

• 1:27:41Ryan Sean Adams?

  There you go, guys. Of course, none of this has been financial advice on the roll-up. You won't hear that on Bankless at any point in time. ETH is risky, DeFi is risky, so is Bitcoin. You could definitely lose what you put in, but we are headed west. This is the frontier. It's not for everyone, but we're glad you're with us on the Bankless journey. Thanks a lot.

• 1:28:01David Hoffman?

  Hey, we hope you enjoyed the video. If you did, head over to Bankless HQ right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence. We recommend joining our daily newsletter, podcast, and community as a Bankless premium subscriber to get the most out of your Bankless experience. You'll get access to our market analysis, our alpha leaks, and exclusive content, and even the Bankless token for airdrops, raffles, and unlocks. If you're interested in crypto, the Bankless community is where you want to be. Click the link in the description to become a Bankless premium subscriber today. Also, don't forget to subscribe to the channel for in-depth interviews with industry leaders, Ask Me Anythings, and weekly roll-ups, where

• 1:28:44David Hoffman?

  we summarize the week in crypto and other fantastic content. Thanks, everyone, for watching and being on the journey as we build out the Bankless nation.