The Cost System Is So Big and So Important

Links

• Joe Twitter
• Web

Show Partner

This episode is presented by FTX. Trade on an awesome mobile interface fee-free, and still get all the great portfolio tracking features you know and love: https://uponly.tv/ftx

Show Notes

Introduction

 ⁃ Joe co-founded Ethereum and ConsenSys

 ⁃ Worked in robotics, machine vision, AI. Moved into the financial space and became depressed by that, the economy and geopolitics. Saw centralised systems as bankrupt politically and financially

 ⁃ Read the Bitcoin whitepaper in 2011. Met Vitalik in Toronto in 2014 and read the Ethereum whitepaper that night and it became clear it was the way to build a system better, faster and more expressive than on Bitcoin

 ⁃ Web3 vision resource: polynya.medium.com also /u/liberosist on Reddit

 ⁃ Vitalik did a great job of setting an intellectually honest tone of integrity along with the power of the ideas held them together vs differing opinions

Metamask

 ⁃ Metamask has a decentralised future ahead of it (Token confirmed?!)

 ⁃ Metamask is already an ecosystem and it will be more explicitly an ecosystem

NFTs

 ⁃ Astonishing to see how many people are affected by the NFT phenomenon. Major crossing of the chasm – use of the technology without a real understanding of the underlying

 ⁃ Cobie: It converted a lot more people but it’s also there is huge hostility to NFTs starting with the climate narrative

 ⁃ Joe: People with entrenched or vested interest trying to slow things down. Can’t worry too much about naysayers, try to stay patient and educate

 ⁃ Ethereum and others have a solution for the energetically expensive PoW. Bitcoin energy burning is almost a religion but with renewable energy they may be able to stay the course

Institutions and CBDCs

 ⁃ Multiyear agreements with financial institutions to enable Ethereum technology

 ⁃ NFT pipeline is also really big for projects right now

 ⁃ Regulation and liquidity along with matured technology the movement will be unstoppable

 ⁃ Nation state money is declining, looks like the end of a 80 year debt supercycle moving into a new era

 ⁃ Cobie: Governments have realised this, spinning up CBDCs per country. Not sure what they mean by it but they’ve accepted using these systems as the future

 ⁃ Joe: Depends on the country, China CBDC won’t be very decentralised. CBDCs will take a long time to figure out, don’t want to mess with systems billions rely on. ConsenSys have worked on multiple CBDC projects

 ⁃ Real time economy would shrink the duration between value creation events and be a growth driver for the economy

Multichain

 ⁃ Seen a multichain future for a long time

 ⁃ Security is dominated by BTC and ETH. More projects are focused on Execution

 ⁃ Alt L1s are more like competitors to Ethereum L2s

 ⁃ Solana are spending a huge about for security, fees are an order of magnitude less than what they’re paying. May look to ETH rollups in future for a solution

 ⁃ Ethereum has a massively unfair advantage with the size and speed of the development of the ecosystem

 ⁃ Cobie: How does Ethereum retain the ability to make changes while people become more reliant on it?

 ⁃ Joe: Not a new problem, Vitalik and others have spoken about simplifying the lower layers. Need to continue to improve the chain and sharding. Can see Palm as an ETH L2, Gnosis as a L2 and L3

Memes & New Economy

 ⁃ Everything is a meme now

 ⁃ Budweiser tweeting gm and wagmi

 ⁃ Moving from a previous economy which is very physical to an economy that is essentially all about creativity and living in virtual worlds

 ⁃ Things are going to get wacky and interesting in a creativity economy

MEV

 ⁃ Didn’t specifically think of MEV back in the day but recognised fee mechanisms would have sophistication come to it

 ⁃ Wallet Extractable Value is also being paid attention to

 ⁃ Continually evolving set of systems designed to make communities, users and organisations happy with given choices. End up paying the users of the system out of the MEV

Identity

 ⁃ Wallet is your digital authority

 ⁃ MetaMask moving towards enabling increasingly granular security

 ⁃ Able to have multiple personas and bring them together e.g. personas may need to be brought together for a better loan

⁃ Identity has been worked on from the start by ConsenSys and others from the start

 ⁃ As DAOs become increasingly politically important there will be a forum in which identity starts to ramify significantly

 ⁃ Thought DIDs would have been adopted quickly but it’s a deep set of problems

Final Alpha

 ⁃ Be kind to the people around you, take care of them

Notes by Kevin and Luke

Music by GiovanniPickle