ETH's Modular Bet Will Work | Alex Botte & Alexander Pack

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Dec 30, 2024

In this engaging discussion, Alex Botte, a partner at HackVC, and founder Alexander Pack, share their insights from over a decade in the crypto space. They dive into Ethereum's transition to modular architecture, analyzing its effects on market performance and price dynamics. The duo compares Ethereum's model to AWS, debates its dual role as money and utility, and explores Solana's future challenges. They also predict which Layer 1 and 2 solutions might dominate by 2025, shedding light on the evolving crypto landscape.

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ANECDOTE

Ethereum's Early Challenges

Alex Pack, founder of HackVC, recounts Ethereum's early struggles with retaining talent and funding due to competition from other L1s.
This competition prompted Ethereum to consider a modular approach to attract developers and investment.

INSIGHT

Defining Ethereum's Success

Defining success for Ethereum's modular approach depends on the chosen metrics.
While market share and TVL suggest relative success, ETH price has suffered.

ANECDOTE

AWS vs. Ethereum

AWS, like Ethereum, experienced a market share decline after embracing a modular approach.
However, AWS remains profitable, raising questions about the best strategy for Ethereum.

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In today's episode Alex Botte and Alexander Pack from Hack VC break down Ethereum's controversial shift from monolithic to modular. Starting with ETH's foundational decision to embrace L2s, they analyze the four key impacts on price, token value distribution, market share, and future adaptability. The discussion explores parallels with AWS, debates "ETH as money," and examines Solana's coming challenges with modularity. They close with predictions on which L1s and L2s will dominate in 2025, offering insights into crypto's evolving infrastructure landscape. Thanks for tuning in!

Resources

https://blog.hack.vc/was-modular-a-mistake-a-data-driven-take-on-ethereums-grand-strategy/

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Timestamps:

(00:00) Introduction

(01:47) Ethereum's Modular Decision

(09:14) Has Modularity Hurt ETH Price

(16:45) Amazon vs Ethereum

(24:59) 4 Impacts of Modularity

(35:53) Skale Ad

(36:32) Magic Eden Ad

(37:16) Uniswap Ad

(37:49) How to Fix ETH

(43:15) ETH as Money is Dead

(47:17) Ethereum Bull Case

(57:12) Solana's Position

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Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.