The Economics of Decentralization in Ethereum

5min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Eigenlayer is a new company that aims to build decentralization on the Bitcoin network. The trust model of Eigenlayer relies on money and collusion resistance, not just economics. If you're restaking your ETH then anything can be slashed through the system - even if it's an objective violation. So these two things interlock together to create the Ethereum security model.

Is re-staking the biggest thing to happen to Ethereum since MEV?

We’re joined by Sreeram Kannan who walks us through Eigenlayer. The re-staking protocol that is set to change the trajectory of Ethereum forever. It may even be launching pretty soon…

------ ✨ DEBRIEF | Unpacking the episode: https://www.bankless.com/debrief-sreeram-kannan

------ 🪂Airdrop Alpha is waiting for you on Bankless 🪂 https://www.bankless.com/the-ultimate-guide-to-airdrops?utm_source=YouTubeRSS&utm_medium=Info&utm_campaign=Airdrop_Alpha

------ BANKLESS SPONSOR TOOLS:

🐙KRAKEN | MOST-TRUSTED CRYPTO EXCHANGE https://k.xyz/bankless-pod-q2

🦊METAMASK LEARN | HELPFUL WEB3 RESOURCE https://bankless.cc/MetaMask

👾STADER LABS | ETHX LIQUID STAKING https://bankless.cc/Stader

⚖️ ARBITRUM | SCALING ETHEREUM https://bankless.cc/Arbitrum

🗣️TOKU | CRYPTO EMPLOYMENT SOLUTION https://bankless.cc/Toku

🎮IMMUTABLE | GAMING ECOSYSTEM https://bankless.cc/Immutable

🛞MANTLE | MODULAR LAYER 2 NETWORK https://bankless.cc/Mantle

------ Topics Covered

0:00 Intro 7:51 How Big Is Restaking? 9:41 What is Restaking? 16:22 What Was The Aha Moment? 21:32 Restaking Explained (Simply) 25:11 Where Does Eigenlayer Live? 29:40 Slashing on Eigenlayer 42:20 Risks of Restaking 57:23 Restaking Networks 1:05:27 Designing Modular Trust 1:07:43 Eigen DA 1:10:35 The 3 Aspects Of Trust 1:14:18 Tokens On Eigenlayer 1:17:54 Why Start a Network on Eigenlayer? 1:24:22 2 Uses Of Economic Security 1:26:06 Eigenlayer Alignment 1:30:42 Restaking Risk Management 1:36:19 Takes on Vitalik's Post 1:46:55 When is Mainnet Launch? 1:49:59 How Will Restaking Change The World? 1:56:59 Outro

——— Resources:

Sreeram Kannan: https://twitter.com/sreeramkannan

Vitalik’s Article ‘Don’t Overload’: https://vitalik.ca/general/2023/05/21/dont_overload.html

Sapiens by Yuval Harari: https://www.amazon.com/Sapiens-Humankind-Yuval-Noah-Harari/dp/0062316095

------ Related Episodes:

MEV: https://www.youtube.com/redirect?event=video_description&redir_token=QUFFLUhqa196eHJidEhiMUdla1Q5Y0FpWklJTVFkWXVfQXxBQ3Jtc0tuSGtubk1QcFpIS2lfeHdjQzJRY3dmbUFDdHpNNDRISlJfZ1F6MWh2SGM4X2JTWk1RbnVPb1dZVy1sRFF2WDNlNXFPQlFZN3dCRnJ3XzFyelp0WmxMTGtuSWh0eXhhejhuTTJCaVBDYnh6b042d2s1NA&q=https%3A%2F%2Fwww.bankless.com%2F-cryptos-existential-threat-mev-panel&v=nb7x7n8Ga3U

https://www.bankless.com/125-matt-cutler

---- 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://www.bankless.com/disclosures