Bankless 36 - The DeFi Blockspace Cycle | Nic Carter
Oct 26, 2020
In this discussion, Nic Carter, a crypto writer and venture capitalist, dives into the fascinating world of Ethereum's gas fees and their direct impact on decentralized finance. He explores the cyclicality of transaction fees, illustrating how rising costs can discourage users, thus lowering fees againâcreating a never-ending cycle. Nic also contrasts Ethereum's approach with Bitcoin's philosophy, addressing scalability challenges and innovative solutions like roll-ups. Expect insights that clarify the critical interplay between blockspace, transaction behavior, and market dynamics!
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Financial Primacy of Blockchains
- Scarce block space on blockchains like Ethereum leads to a prioritization of financial transactions.
- High-value transactions outbid others, making non-financial use cases less viable.
Bitcoin's Reckoning
- Bitcoin went through a reckoning in 2017 when its community realized it wouldn't be a payment network as some initially thought.
- This resulted in forks and a shift in understanding Bitcoin's true capabilities.
Ethereum Following Bitcoin
- Ethereum's ideology often follows Bitcoin's with a time delay, adopting similar principles like acknowledging governance challenges.
- Both communities grapple with scalability and the role of fees.
